- The Trump administration imposed 10% and 12.5% levies on goods from 60 trading partners over forced labour enforcement.
- Global trade partners have responded with criticism and mixed reactions to the new tariffs.
- Indian textile exporters expressed concern, with a trade association chairman noting the differential treatment risks diverting sourcing orders away from India.
- The tariff has elicited a mixed reaction: some exporters fear higher costs, while others believe Indian goods remain competitively taxed.
- New Zealand Prime Minister Christopher Luxon called the new tariffs "extremely disappointing to see" and stated that the US investigation lacked meaningful evidence on forced labour claims.
- Japan's Chief Cabinet Secretary Minoru Kihara objected to tariffs imposed on the grounds that Japan lacks a forced labour import prohibition system, noting Japanese industry operates under international norms.
- China's Foreign Ministry spokesman Lin Jian rebuked the new 12.5 percent levy, asserting that "Tariff wars and trade wars do not serve any parties’ interests."
- The European Commission noted positively that the new tariffs align with US commitments under the EU-US Joint Statement.
- Australian Trade Minister Don Farrell rejected forced labour allegations, stating Australia takes modern slavery seriously and will continue to lobby the US.
- A UK government spokesman said US recognition of UK steps meant no additional tariffs under the announcement, and UK exports would see "no negative change".
- India's textile and apparel exports to the U.S. are close to $11 billion annually; India has responded with a DGFT notification and four Labour Codes to address forced labour concerns.
U.S. trade partners have reacted with disappointment to President Trump's announcement of a 10% tariff on goods from 60 countries, including India, citing concerns over competitiveness and economic impact.
The tariffs, imposed under allegations of inadequate enforcement of forced-labour import prohibitions, have elicited mixed responses from Indian exporters.
S.C. Ralhan, president of the Federation of Indian Export Organisations, noted that India’s placement in the lower 10% tariff category reflects recognition of its efforts to strengthen its framework against forced labour. He stated, “This has helped India secure a relatively favourable position compared with many of its global competitors.”
However, the tariffs pose challenges, particularly for the gem and jewellery sector. Mr. Rokde expressed concern that the tariffs would make Indian products less price competitive, stating, “The U.S. government’s decision… will undoubtedly create challenges for our gem and jewellery exporters.”
The textile and apparel industry, which exports nearly $11 billion annually to the U.S., is also apprehensive. Ashwin Chandran, chairman of the CITI, remarked, “The tariff imposition on the issue of forced labour is deeply unfortunate as it does not indicate an expiry date and causes reputational risks.”1314
Despite these concerns, some industry executives believe the 10% levy is lower than anticipated, potentially allowing Indian auto component exporters to remain competitive against countries like China and the EU.
Overall, the impact of the tariffs will vary across sectors, with some exporters optimistic about maintaining their competitive edge despite the new levies.
“China’s Foreign Ministry spokesman Lin Jian rebuked the new 12.5% levy, asserting that ‘Tariff wars and trade wars do not serve any parties’ interests.’ Indian textile exporters fear the tariff, which has no expiry date, could divert sourcing orders away from India as competitors receive Section 301 exemptions.”
