US President Donald Trump imposed a 10 per cent tariff on imports from India and 16 other nations over forced labour concerns, effective Friday.
US Trade Representative Jamieson Greer announced the Section 301 measures, which affect 60 nations with tiered tariff rates of 10 and 12.5 per cent.
India's June 14 foreign trade policy amendment prohibiting forced labour imports successfully reduced its tariff bracket from 12.5 per cent to 10 per cent.
The United States has imposed a 10 per cent tariff on goods imported from India and 16 other countries over forced labour concerns. These fresh levies take effect at 12:01 am on Friday.
US Trade Representative Jamieson Greer announced the measures affecting 60 nations under Section 301 of the Trade Act of 1974 on Thursday. The enforcement replaces an expiring temporary 10 per cent import duty.
That temporary measure took effect after the US Supreme Court in February struck down the April 2025 "Liberation Day" tariffs. The court also dismissed last year's "reciprocal tariffs" using emergency powers as illegal, prompting the Trump administration to initiate two investigations.
"As a result of these actions, the Trade Representative has advised me that the goods of these economies should be tariffed at the 10 per cent rate to further encourage these economies to effectively enforce such prohibitions," US President Donald Trump said to PTI in a memorandum on Thursday.
Exemptions and Tiered Rates
Seventeen countries face the 10 per cent tariff rate. This group includes India, Canada, the UK, Bangladesh and Pakistan. Another 43 countries, including China and Japan, face a higher 12.5 per cent levy.
Specific product exemptions apply under the new US framework. Raw materials that could trigger domestic supply shortages are excluded from the tax. The US also exempted items causing economy-wide disruptions and goods that cannot be adequately produced or grown in sufficient quantities domestically.
"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," Greer said.
India's Policy Response
India amended its foreign trade policy on June 14 to prohibit the import of goods produced using forced labour.
A US Federal Note formally noted this domestic policy shift after the unveiling of the proposed tariffs in June. The modification successfully reduced India's tariff bracket from the originally proposed 12.5 per cent down to 10 per cent.
"A reduction in the tariff from 12.5 per cent to 10 per cent is modest in percentage points but significant in signalling. It suggests that Washington is willing to calibrate enforcement while preserving the strategic trajectory of the IndiaUS economic partnership," Abhik Sengupta, a programme officer with an industry body, said.
India formally contested the two initial USTR investigations. New Delhi maintained these trade disputes should be resolved through ongoing bilateral trade agreement discussions.
The US remains India's second-largest trade partner and the largest destination for exports. Bilateral goods trade stood at $141bn in 2025. Indian exports accounted for $87.3bn of that total, according to commerce department data.
