US imposes 10% tariff on Indian goods over forced labour rules

Washington,UPDATED: Jul 24, 2026 03:52 IST

The United States has imposed a 10 per cent tariff on goods bought from India and 16 other countries over the use of forced labour in making those products. The move was announced by US Trade Representative Jamieson Greer under Section 301 of the Trade Act, and forms part of a wider action covering 60 economies.

The announcement came on Friday, a day before the expiry of the 10 per cent additional levies that the Trump administration had imposed on all countries. India is among 17 countries that will face the 10 per cent rate under the new action, along with Canada, the UK, Bangladesh and Pakistan.

In a statement, the Office of the US Trade Representative said Greer had taken the final action at President Donald Trump’s direction under Section 301 of the Trade Act of 1974. It said the tariffs were being imposed on 60 economies for their failure to impose and effectively enforce a ban on the import of goods produced with forced labour.

Greer said, ‘The action will begin to correct what is both a human rights abuse and a distortive trade practice to improve the welfare of workers everywhere.’

The 10 per cent tariff applies to 17 countries. India had earlier been placed among countries facing a 12.5 per cent tariff. A Federal Note on the matter noted that India had adopted a ban on imports made with forced labour after the proposed tariffs were unveiled in June.

On June 14, India amended its foreign trade policy to prohibit the import of goods produced using forced labour. India has contested both investigations launched by the USTR and has said these issues can be discussed as part of the bilateral trade agreement that is under discussion.

The Trump administration started the two investigations after the US Supreme Court in February dismissed last year’s ‘reciprocal tariffs’, imposed using emergency powers, as illegal. The administration then imposed 10 per cent tariffs on all countries, which expire on Friday.

The US is India’s second-largest trading partner and the biggest destination for its exports. In 2025, bilateral goods trade stood at nearly USD 141 billion, with India’s exports at USD 87.3 billion, according to commerce department data. The new US action places India among 17 countries facing a 10 per cent tariff as Washington links the measure to forced labour-related import rules.

With PTI Inputs

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