Bharti Airtel sees potential for tariff hikes on unlimited data plans

The US is introducing new duties on imports from most major trading partners, setting rates between 10 and 12.5 percent. This move represents the largest action to restore tariff policy, which was previously challenged by the Supreme Court, and is aimed at reacting to the alleged failure of about 60 economies to prevent forced labor in their supply chains at the expense of American workers.

Details of the New Duties

The new charges take effect on Friday at 00:01 New York time. According to the notification, the tariffs do not apply to goods already loaded onto vessels before this time. Goods from ten countries recognized as having adopted restrictions against forced labor will be subject to 10 percent tariffs, including Mexico, the United Kingdom, Canada, and India.

Tariffs on products from the European Union and Taiwan will not exceed 10 percent, while goods from Japan, Switzerland, and South Korea will be limited to approximately 12.5 percent, aligning with agreements reached with the US. Products from dozens of other countries will face a 12.5 percent levy, with the possibility of additional tariffs being imposed. The formula also provides for exceptions, such as for goods that cannot be produced in the US, or if the tariffs cause economic disruption.

Context and Policy

These tariffs are Trump's broadest step to restore his protectionist regime after his previous tariffs were overturned by the highest court. Following this defeat, he introduced a global import tax of 10 percent, which expires on Friday, and the new charges ensure continuity of measures. US Trade Representative Jamieson Green stated in a statement that 'the United States has had a ban on forced labor-related imports for nearly a century, and we strictly enforce it. It is high time our trading partners did the same.'

A high-ranking administration official rejected the notion that Trump is introducing new tariffs solely as a replacement for previously revoked duties, but emphasized that the president will use all available tools and will not allow a judicial ruling to undermine his trade policy. This official suggested that the administration planned to introduce forced labor-related tariffs anyway and is implementing them now to avoid shocks to American businesses.

Changes and Exemptions

The administration signaled an upcoming move last month by releasing the results of the forced labor investigation. According to the high-ranking official, there will be some changes compared to the initial proposal, including lowering the rate for India to 10 percent instead of the threatened 12.5 percent. Imported goods such as fuel, food, and fertilizers will be exempt from the new tariffs, as will automobiles, metals, and medicines, which are regulated by separate industry tariffs. Goods falling under the North American Free Trade Agreement with Mexico and Canada will also be excluded.

Future and Analyst Concerns

Green leads Trump's revised trade policy, which aims to combat unfair practices abroad using more carefully vetted legislation requiring months of procedures and public participation. This more measured approach contrasts with the unpredictability and urgency of Trump's tariff barrages throughout most of 2025. Trade expert Blake Harden from consulting firm Ernst & Young believes that Trump has not finished with tariffs or disrupting the status quo, noting that 'there is still much uncertainty hanging over things' and 'there is still a lot ahead this year.'

The USTR's proposal for the latest tariffs followed an investigation under Section 301 of the Trade Act of 1974, which recommended a 12.5 percent tariff for countries without laws banning imports produced with forced labor. For economies that have such bans but do not enforce them sufficiently, or have committed to doing so, a 10 percent import tariff was recommended.

The decisions of the US Department of Justice come against the backdrop of the July 15 announcement that the US will also begin imposing a 25 percent tariff on certain goods from Brazil, citing Section 301, following an investigation into unfair trade practices. Furthermore, US Customs and Border Protection is currently refunding the so-called Trump reciprocal tariffs, which were deemed illegal by the Supreme Court in February, benefiting thousands of American importers, including Nike Inc.