Analysts suggest the US threat of additional tariffs on Indian imports, citing labor concerns, is a pressure tactic to secure a better deal in ongoing trade talks. This follows a U.S. investigation into unfair trade practices.

The threat by the US to impose additional tariffs on imports from India over forced labour supply-chain concerns is a “pressure” tactic deployed by Washington to drive a harder bargain in its trade talks with New Delhi, according to analysts. Following a Section 301 unfair trade practices investigation, the Trump administration proposed that products from India, China, Japan, South Korea, Brazil and Switzerland would be subject to a 12.5 per cent levy, while a 10 per cent rate would apply to...