India spared worst of US ‘forced labour’ tariffs, but hard talks loom

New Delhi avoided a higher tariff rate via a timely policy change, but US demands and Russian oil friction leave a trade deal in limbo

As late as last month, India was being threatened with a 12.5 per cent rate, but ultimately earned a place among the 17 economies – including Canada, Britain, Bangladesh and Pakistan – hit with the lower 10 per cent tariff.

The reprieve followed India amending its foreign trade policy on June 14 to ban imports of goods made with forced labour, which US Trade Representative Jameson Greer cited when placing India in the lower tariff band.