US President Donald Trump has taken a sensational decision. Citing serious allegations that certain countries have failed to adequately curb imports of goods produced through forced labor, he has imposed new tariffs on nearly 60 partner nations worldwide. He made clear that imports coming into the United States from various countries will now attract duties ranging from 10 percent to 12.5 percent.
With the deadline for the temporary 10 percent global tariffs expiring, the US government has invoked “Section 301” of the Trade Act of 1974 to implement this stringent decision. This move is expected to have a significant impact on business communities in numerous developing and developed nations that export to the United States.
In this round of international tariff decisions, India has received some relief. Initially, the US had considered imposing a steep 12.5 percent tariff on goods coming from India as well. However, recognizing the speed with which India implemented laws against forced labor and the strict measures it undertook, the Trump administration reduced the tariff on India to 10 percent. This is expected to offer Indian exporters a relative advantage compared to other countries.
In addition, the United States has granted complete exemption from these tariffs for certain internationally critical goods. It has made clear that these new taxes will not apply to imports of oil, natural gas, and fertilizers, as well as goods falling under the scope of the US-Mexico-Canada trade agreement. These exemptions are expected to bring significant relief to the global energy market and the agricultural sector.