Archive · 26 Jul 2026
US Imposes Tariffs on India Over Forced Labour Concerns
The United States recently announced new tariffs on goods from 60 countries, including India.
India was placed in the lower 10% tariff category.
India has talked to the US about this and said they are still working on a trade agreement.
The US is doing this because they are worried about goods made with forced labour.
India has also changed its own rules to stop importing such goods.
The US is India's second-largest trading partner, and they do a lot of business together.
The US announced tariffs ranging from 10% to 12.5% on goods from 60 economies under Section 301 of the Trade Act of 1974.
India was placed in the lower 10% tariff category due to concerns over forced labour in imports.
India has conveyed its position to the US and continues negotiations on a Bilateral Trade Agreement (BTA).
The US Trade Representative (USTR) said the tariffs address human rights concerns and trade distortions.
India amended its Foreign Trade Policy to prohibit imports of goods produced using forced labour.
- Who
- India and the United States
- What
- US imposes tariffs on goods from 60 economies, including India; India responds and continues trade talks
- When
- Announced on July 23, 2025
- Where
- United States and India
- Why
- US concerns over imports produced using forced labour and trade distortions
US Tariff Measures
India's Response
Tariff Rates
US Tariff Measures
The US imposed additional tariffs of 10% on imports from India under Section 301 of the Trade Act of 1974, initially proposing 12.5%.
India's Response
India was placed in the lower 10% tariff category, which provides a relative advantage to Indian exports in key sectors.
Forced Labour Concerns
US Tariff Measures
The US claims that India and other economies have failed to effectively prohibit the import of goods produced using forced labour.
India's Response
India has amended its Foreign Trade Policy to prohibit the import of goods produced using forced labour and maintains that such issues should be addressed through bilateral trade negotiations.
Bilateral Trade Agreement
US Tariff Measures
The US is using tariffs as a tool to address trade distortions and human rights concerns.
India's Response
India is engaged in negotiations for a Bilateral Trade Agreement (BTA) with the US to address tariff and market-access concerns.
- Tariff Rates
- 10% and 12.5%
- Affected Economies
- 60
- India's Tariff Category
- 10%
- Bilateral Trade Agreement
- Under negotiation
- US President
- Donald Trump
- US Trade Representative
- Jamieson Greer
- India's Exports to US
- $87.3 billion (2025)
- Bilateral Goods Trade
- $141 billion (2025)
