24 July,2026 11:28 AM IST | Washington | mid-day online correspondent
Donald Trump and Narendra Modi
The United States has imposed a 10 per cent tariff on goods imported from India and 16 other countries over concerns related to the use of forced labour in the production of goods, the Office of the US Trade Representative (USTR) announced on Friday.
The tariffs were imposed under Section 301 of the US Trade Act of 1974, with the Trump administration stating that the action is intended to address what it described as a failure by several countries to effectively prohibit the import of goods produced using forced labour.
US Trade Representative Jamieson Greer said the final action, taken at the direction of President Donald Trump, imposes tariffs on 60 economies following investigations into their compliance with forced labour-related trade standards.
According to the USTR, the measures target countries that have failed to impose and effectively enforce prohibitions on the import of goods produced using forced labour.
"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 in a statement.
The announcement comes a day before the expiry of the 10 per cent additional tariffs that had been temporarily imposed on imports from all countries.
India is one of 17 countries that will face a 10 per cent tariff under the new action. Other countries in the same category include Canada, the United Kingdom, Bangladesh and Pakistan.
Earlier proposals had placed India in a category facing a 12.5 per cent tariff. However, the final notification reduced the rate to 10 per cent after taking note of policy changes introduced by New Delhi.
According to a Federal Register notice, the revised tariff reflects India's decision to strengthen its trade policy concerning goods produced with forced labour.
The US government acknowledged that India amended its Foreign Trade Policy on June 14 to prohibit the import of goods produced using forced labour.
The amendment came after the USTR unveiled the proposed tariff measures in June.
Despite the policy change, India remains subject to the 10 per cent tariff announced on Friday.
India has challenged both investigations initiated by the USTR and has maintained that issues relating to trade practices and market access should be addressed through the ongoing bilateral trade negotiations between the two countries.
The Trump administration initiated the investigations after the US Supreme Court, in February, ruled that the administration's earlier reciprocal tariffs imposed under emergency powers were unlawful.
In response to that ruling, the administration imposed temporary 10 per cent tariffs on imports from all countries, which are scheduled to expire on Friday.
The United States is India's second-largest trading partner and the largest destination for Indian exports.
According to data from India's Commerce Department, bilateral goods trade between the two countries stood at nearly USD 141 billion in 2025, with India's exports valued at USD 87.3 billion.
(With inputs from PTI)
