Business
US plans additional 12.5% tariff; India says talks on Section 301 probes ongoing
It has proposed new tariffs on most Indian goods.
India said it is engaged with the US on investigations under Section 301 of the US Trade Act of 1974, concerning forced labour and excess industrial capacity. This comes at a time when India and the US are engaged in a three-day discussion in New Delhi to finalise the details of an interim deal ahead of the proposed bilateral trade agr eement (BTA).
Meanwhile, Canada PM Mark Carney said the country shares US’ concerns about the use of forced labour and would soon propose its own measures to clamp down further on the practice.
‘No Final Decision on Levy Yet’
“India remains engaged with the US on the matter as a part of Section 301 proceedings,” the commerce and industry ministry said in a statement. “India is also parallelly engaged with the US for finalisation of a framework agreement…”
The USTR proposal follows investigations launched against 60 countries over what it described as their failure to impose and effectively enforce bans on imports of goods made with forced labour. “Specifically, the US Trade Representative proposes additional duties on all products of the investigated economies, except as provided in annex A,” it said.
The annex includes meat products, food items, chemicals, certain coal, ores, natural gas, petroleum products, uranium and pharmaceuticals, among others.
The USTR said its investigation indicated “that the acts, policies and practices of India related to the failure to impose and effectively enforce a forced labour import prohibition are unreasonable and burden or restrict US commerce.”
Trade experts said India has several grounds to challenge the probe and that it could be a pressure tactic to make New Delhi yield to other demands.
The commerce and industry ministry noted that the proposed tariffs are not final, and stakeholders can participate in public hearings to be held on July 7. “The USTR will consider the comments and testimony received before taking a final decision on the proposed measures,” it said.
Also, products covered under Section 232 tariffs, such as steel and aluminium, and certain other products are excluded from the tariff proposals. “A special mechanism has also been proposed for textile and apparel products that could allow a certain volume of imports from selected economies to enter the US at lower tariff rates,” the ministry said, although specific rates have not yet been finalised.
The USTR had launched two separate Section 301 investigations on March 11 and 12, 2026, covering 60 economies over concerns related to forced labour and excess industrial capacity. On June 2, it issued its findings in the forced labour investigation and proposed additional tariffs on imports from 60 economies. The proposal includes additional 10% tariff on imports from Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan, and additional 12.5% tariff on imports from 54 other economies, including India and China.
Pressure Tactic
“The move is a pressure tactic for us to yield on trade and oil-related demands. India should be cautious,” a trade expert said on the condition of anonymity.
India should be prepared for additional Section 301 tariffs in areas such as excess capacity, where the US is conducting another investigation, the person added.
Think tank GTRI said New Delhi should challenge the ambit of the probe.
“The current investigation exceeds the scope of Section 301, which deals with market-access barriers faced by the US firms in the country being investigated and not what it imports and from where,” GTRI founder Ajay Srivastava said.
India must argue that the US is attempting to impose its preferred import-control framework on other countries through unilateral trade measures, which is outside the scope of Section 301, he said.
“India may also argue that concerns regarding forced labour, particularly in countries such as China, are often product-specific and that the US itself remains a major importer of many of the products at issue,” Srivastava said. “Hence, broad country-wide tariff actions are an inappropriate response when the problem could be limited to a few products.”
The Cabinet, in a meeting chaired by Prime Minister Narendra Modi on Wednesday, approved the promulgation of an ordinance to amend the Income Tax Act to pave the way for this exemption, the people said. A notification is expected soon after the President gives her assent to the ordinance.
More measures are expected to encourage capital flows.
Foreign investors are currently subject to 12.5% long-term capital gains (LTCG) tax on listed shares and bonds held for more than 12 months. They also pay a 20% withholding tax on interest earned from government bonds. The government had ended the concessional 5% rate available to them in 2023.
AgenciesIndustry Demand
The government had used the ordinance route in 2019 to cut the corporate tax rate to encourage private investment.
Market participants have been urging a reduction in LTCG tax and withholding tax on interest earned on government bonds amid sustained capital flows out of India.
The latest move comes in the backdrop of foreign portfolio flows turning negative and the rupee weakening sharply against the dollar with the West Asia conflict continuing.
Regulators are expected to initiate further measures to complement the government’s efforts to make the Indian markets attractive for foreign capital, said one of the persons cited above.
In the calendar year so far, exits by FPIs add up to a net Rs 2.47 lakh crore, more than double the Rs 1.04 lakh crore they pulled out in calendar 2025. The rupee hit an all-time low of 96.965 to the dollar on May 20 but has since rebounded as the Reserve Bank of India has stepped up support and oil prices eased after renewed US-Iran peace efforts.
(With inputs from Anuradha Shukla & Jatin Takkar)
The cancellation of the auction, which effectively curtails the supply of government securities, lent support to bond prices. The yield on the benchmark 10 year government bond fell three basis points from an intraday high of 7.04% to 7.01%, and ended at 7.02% on Wednesday.
“The bids for yields on the T-bill could have been higher than the comfort level of the RBI,” said a trader from a private sector bank, explaining a possible reason for the RBI cancelling the auction.
The 91-day T-bill had an average yield of 5.54% on Wednesday, versus 5.52% last week. The 182-day t-bill and 364-day t-bills had average yields of 5.67% and 5.87% respectively last week.
Another trader said that it could also be a function of high cash balance with the government after the RBI dividend.
The RBI approved a record dividend of ₹2.86 lakh crore in late May, for the 2025-26 fiscal year.
The central bank is set to auction the 10 year 2036 paper for ₹34,000 crore on Friday, along with announcing its monetary policy decision.
Business
Dollar clings to 2-month high as Gulf hostilities flare, yen wobbles near intervention zone
Dollar clings to 2-month high as Gulf hostilities flare, yen wobbles near intervention zone
This is the first dollar bond issued out of India since January this year when ReNew Energy raised $600 million by issuing a five year bond. Since then though geopolitical volatilities more particularly due to the US-Israel attack on Iran has meant that the high overseas yields were beyond the expectations of Indian companies looking to raise funds from abroad.
Nirmal Jain, founder and managing director at IIFL Finance said the successful issue comes at a time of heightened volatilities, pressure on the rupee and capital outflows from India.
IIFL Finance successfully raised $500 million through international dollar bonds, marking the first such issuance from India since January. Priced at 7.6%, the 3.25-year bond attracted significant investor interest despite geopolitical volatilities. Proceeds will fund lending to economically weaker sections, including MSMEs and gold loans.
“It’s a positive thing at a time when there has been no issue from India for a long time. This is also the first social issue from IIFL Finance. The proceeds of this issue will be used to lend to economically weaker sections of society which includes MSMEs, gold loans and loan against property,” Jain said.
Prathamesh Sahasrabudhe, MD & Head, Capital Markets, India, Standard Chartered Bank said, “This marks the market reopening dollar bond transaction for Indian issuers since the onset of the West Asia crisis.
Meta accuses Australia of breaching FTA, invokes US ’trade action’
The well-known Swan Valley distillery has been making a series of changes to slim down the business since it fell into administration last year.
Wall Street stocks pulled back from record highs as flaring tensions in the Middle East and rising crude prices stoked inflation jitters and convinced investors to take some profits.
Check out what’s clicking on FoxBusiness.com.
A woman was arrested at Walt Disney World‘s Contemporary Resort in Florida, after deputies say she threw multiple glasses of water at a restaurant manager, allegedly grabbed another manager by the shoulders and snatched a cast member’s name tag during a dispute over seating arrangements.
Leslie Helen Varley, 57, was arrested and charged with two counts of battery, robbery by sudden snatching and criminal mischief, according to an Orange County Sheriff’s Office arrest affidavit reviewed by FOX Business.
The incident happened May 19, at Steakhouse 71 inside Disney‘s Contemporary Resort.
According to the affidavit, restaurant manager Jessica Lee Brunk told deputies she was helping a large party that became upset after learning the group could not all be seated together. Brunk said the conversation was cordial until staff informed the party that tables could not be moved.
DISNEY WORLD REVIVES ‘LADIES AND GENTLEMEN’ GREETING AFTER YEARS OF GENDER-NEUTRAL MESSAGES
Leslie Helen Varley was arrested after deputies accused her of throwing water at a restaurant manager and taking a cast member’s name tag during a dispute at Walt Disney World’s Contemporary Resort in Orlando, Fla. (Orange County Corrections Department / Unknown)
That’s when Varley allegedly grabbed Brunk by both shoulders and moved her about six steps, the affidavit states.
A second manager, identified in the report as John Kevin Ortiz, then stepped in to assist. Ortiz told deputies Varley became irate and threw three glasses containing water and ice at him. All three glasses struck the front of his body, according to the affidavit.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 99.39 | -2.02 | -1.99% |
Deputies said Varley then approached Ortiz and snatched his Disney name tag from the left side of his suit jacket before walking away from the restaurant.
Ortiz followed Varley to the front desk to retrieve the name tag. During the confrontation, Varley allegedly dropped and broke four glasses valued at about $20, according to investigators.
DISNEY WORLD HONORS WORLD WAR II VETERAN’S BIRTHDAY WITH MOVING FLAG RETREAT CEREMONY
A woman was arrested at Walt Disney World’s Contemporary Resort in Orlando, Fla. (Gary Hershorn/Getty Images, File / Getty Images)
Neither manager reported visible injuries and both declined medical treatment at the scene, the affidavit states. Both told deputies they were willing to prosecute.
When questioned by deputies, Varley admitted she became upset after a comment was allegedly made about her disabled daughter touching a cast member, according to the affidavit.
Varley told investigators she threw a glass of water at Ortiz before throwing two more. She also acknowledged taking his name tag, telling deputies she wanted to photograph it because she was upset and intended to report him.
According to the affidavit, Varley said Ortiz did not give her permission to remove the name tag, though she claimed she returned it shortly afterward.
The incident occurred May 19 at a steakhouse restaurant inside Disney’s Contemporary Resort. (Gary Hershorn/Getty Images, File / Getty Images)
Deputies issued Varley a trespass warning from the property and advised her she could be arrested if she returned.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Based on statements from the victims and Varley’s own admissions, deputies arrested her on two counts of battery, one count of robbery by sudden snatching and one count of criminal mischief involving less than $200 in damage, the affidavit states.
A representative for Walt Disney Parks did not immediately respond to FOX Business’ request for comment.
Flesh-eating parasite New World screwworm confirmed in Texas, USDA says
mavo/iStock via Getty Images
By Jennifer Nash
The economic mover and shaker this week is Friday’s employment report from the Bureau of Labor Statistics. This monthly report contains a wealth of data for economists, the most publicized being the month-over-month change
Knicks’ Jalen Brunson has injury scare in first quarter of NBA Finals
Todd Blanche Pinky Swears The $1.8 Billion J6 Slush Fund Is Dead, But Won’t Sign Anything Saying That
Jovem Dex – Money
-
Tech6 days agoWaymo dominates autonomous vehicle registrations as Tesla trails behind
-
News Videos6 days agoThis is BROKEN! INSANE 5x MONEY CAR WASH WEEK! The NEW GTA Online UPDATE Today! (GTA5 New Update)
-
Tech5 days agoSpaceX just won a second Golden Dome contract. This one is $4.16 billion.
-
Business2 days agoJade Biosciences, Inc. (JBIO) Discusses Positive Interim Results From JADE101 Phase I Healthy Volunteer Study and Development Plans Transcript
-
News Videos5 days agoSHE IS KILLING XRP!!! WATCH URGENT AND ACT FAST
-
NewsBeat5 days agoFIRST NIGHT REVIEW: Take That bring the Circus back to life in spectacular sun-soaked style
-
Crypto World5 days agoCFTC Has Approved the First Regulated Bitcoin Perpetual Contract in the U.S.
-
Business5 days agoIs the Spurs Phenom Already Better Than Prime Diesel?
-
NewsBeat5 days agoNovak Djokovic v Joao Fonseca LIVE: French Open latest scores and results after Jannik Sinner’s shocking collapse
-
Entertainment5 days agoWeak ‘Supergirl’ Box Office Tracking Amid Milly Alcock Backlash
-
Crypto World5 days agoSnowflake (SNOW) Stock Rallies on Strong Q1 Results and AI Product Growth
-
Business5 days agoDemand Conditions Improve In Chemicals Sector In April 2026
-
Politics5 days agoThe House | Inside Andy Burnham’s Makerfield Campaign: “Nobody Thinks This Is In The Bag”
-
Crypto World5 days agoMicroStrategy Moves $30 Million in BTC to Coinbase Prime: Is the Bitcoin Sell-Off Already Here?
-
Tech5 days agoThis Week In Security: Ubiquiti Fixes, And FreeBSD Joins The Club You Don’t Want To Join
-
Entertainment6 days agoMaddox Jolie-Pitt Legally Requests to Drop Brad’s Surname
-
Entertainment5 days agoOne of the Greatest Sitcoms of All Time Shoots Up Apple TV’s Charts 11 Years Later
-
Crypto World1 day agoSeagate (STX) Stock Surges to Record High on AI Boom and Legal Settlement
-
NewsBeat5 days agoEverything you need to know as Cambridge’s Strawberry Fair returns after cancelled year
-
Entertainment5 days agoBritney Spears Shares Troubling Update After Hard Year
You must be logged in to post a comment Login