US Trade Team Arrives in Delhi Amidst New Tariff Threats

The Donald Trump administration has signaled a broad escalation in trade policy, proposing tariffs of up to 12.5 percent on 60 trading partners—including India—for failing to adequately address forced labor. The move arrives as American negotiators land in New Delhi to finalize an interim trade agreement despite rising friction.

Washington’s latest trade strategy aims to circumvent recent Supreme Court rulings that invalidated previous tariff blocks. According to a government filing, the US Trade Representative (USTR) intends to impose 12.5 percent levies on nations including India, China, Japan, and Brazil, while Canada and the UK face 10 percent duties. USTR Jamieson Greer characterized the lack of enforced import bans on forced labor as an unacceptable barrier that forces American workers to compete on an unlevel playing field.

While the threat looms, a US delegation led by chief negotiator Brendan Lynch has arrived in New Delhi to continue talks on an interim bilateral pact. The discussions, featuring Indian commerce official Darpan Jain, center on market access, investment, and customs facilitation. The current negotiations build upon a February framework where the US signaled a willingness to reduce tariffs on Indian goods to 18 percent, contingent on broader trade cooperation. These new proposals remain subject to public commentary through July 6, leaving a window for diplomatic maneuvering before the duties become formal policy.