US imposes 10% tariff on Indian imports over forced labour concerns

India has been spared the worst of Washington’s latest tariff action, but analysts say much work still needs to be done to secure a long-awaited US trade deal despite the lower-than-expected levy. The Trump administration’s fresh round of tariffs, unveiled last week, targeted 60 economies it accuses of failing to curb imports made with forced labour. As late as last month, India was being threatened with a 12.5 per cent rate, but ultimately earned a place among the 17 economies – including...

The remaining 55% will attract the new 10% ‘forced labour’ tariffs but lower than that imposed on most of the other countries that were investigated by the U.S.

The United States has imposed a 10% tariff on goods imported from India over concerns related to the use of forced labour in production, reducing the proposed levy after New Delhi amended its foreign trade policy to ban the import of such goods.Last month, the US had proposed a 12.5% tariff on Indian goods under Section 301 of the Trade Act. However, Washington revised the rate after India introduced a prohibition on the import of goods produced using forced labour.“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 in a memorandum issued on Thursday.US Trade Representative Jamieson Greer announced the tariffs on 60 countries under Section 301 of the Trade Act on Thursday, a day before the expiry of the temporary 10% additional levy imposed on imports from all countries.Breaking News: President Trump imposes new tariffs for countries who buy goods and service from those nations who practice the employment and toil of slave labour.The US trade representative said in a notice on its website that the new measures are based on Section 301 of the… pic.twitter.com/uN0KwXHOwU— HIN News (@HerdImmunity12) July 23, 2026 India among 17 countries facing lower tariffThe new tariffs place India among 17 countries that will face the lower 10% rate. Other countries in this category include Canada, the UK, Bangladesh and Pakistan. The remaining 43 countries will face tariffs of 12.5%, including nations that do not have laws prohibiting the import of goods produced using forced labour, such as China and Japan.According to a statement from the Office of the US Trade Representative (USTR), Greer took the final action under Section 301 of the Trade Act of 1974 at the direction of President Donald Trump. The tariffs target economies that have failed to prohibit and effectively enforce restrictions on imports produced with forced labour.The tariffs came into effect at 12.01 am Friday, coinciding with the expiry of the temporary 10% import tax introduced after the US Supreme Court invalidated the president's "Liberation Day" tariffs announced in April 2025. The new tariffs will not apply to raw materials that could affect domestic supply, products likely to cause economy-wide disruptions, or goods that cannot be produced or grown in sufficient quantities in the US.“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.Also Watch:India defends stance as trade talks continueA Federal Note accompanying the decision acknowledged India's move to prohibit imports of goods produced using forced labour. India amended its foreign trade policy on June 14, following the announcement of the proposed tariffs in June.The Trump administration initiated the investigations after the US Supreme Court, in February, ruled that the administration's reciprocal tariffs imposed under emergency powers were illegal. In response, the administration imposed temporary 10% tariffs on imports from all countries, which expired on Friday.“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 India–US economic partnership,” Abhik Sengupta, a programme officer with an industry body here, said.Star Health Shares Fall After Rekha Jhunjhunwala's Stake Change ExplainedIndia has challenged both USTR investigations and maintains that the issues should be resolved through the bilateral trade agreement currently under negotiation.The US remains India's second-largest trading partner and its biggest export destination. Bilateral goods trade stood at nearly USD 141 billion in 2025, including Indian exports worth USD 87.3 billion, according to commerce department data.

The announcement came a day before the expiry of the 10% temporary tariffs imposed by the US on all of its trade partners.

USTR Jamieson Greer announced the new tariffs on 60 countries under Section 301 of the Trade Act on Thursday, a day before the expiration of 10% additional levies on all countries

U.S. Trade Representative Jamieson Greer announced the new tariffs on 60 countries under Section 301 of the Trade Act on July 24, a day before the expiration of 10% additional levies on all countries