India prepares for impact of US tariffs

Experts say labor-intensive exporters likely to bear the brunt of new levies

Washington's new 10 to 12.5 percent tariffs on goods from 60 trading partners act as tools of coercion and intimidation, and will hurt the interests of some labor-intensive industries in India, analysts said.

They added that the levies, which took effect in late July, have become an instrument for the United States to dictate the terms of trade and impose asymmetrical pressure on any partner that "fails to play ball".

The tariffs were imposed under Section 301 of the 1974 US Trade Act by the Office of the US Trade Representative, or USTR, citing claims that these trading partners have failed to ban imports made with forced labor. They encompass 99.4 percent of total US imports from the targeted trading partners.