Archive · 25 Jul 2026
US Imposes 10% Tariffs on India Over Forced Labour Concerns
The United States has imposed a 10% tariff on goods from India and several other countries.
This is because the US believes these goods might have been made using forced labor.
The tariffs are part of a new trade policy under Section 301.
Some countries like the European Union and Taiwan have better rates, while others like Vietnam and China have higher tariffs.
India is in the middle tier with a 10% tariff.
The US has also set up special rules for textile imports from countries like Bangladesh and Malaysia, but not for India.
Some goods like aircraft, certain foods, and medical equipment are exempt from these tariffs.
The US imposed 10% tariffs on India under Section 301, citing forced labor concerns.
India has prohibited imports of goods produced using forced labor and is negotiating a trade deal with the US.
The EU and Taiwan have favorable tariff rates, while Vietnam and China face higher tariffs.
Textile tariff-rate quotas (TRQs) have been established for Bangladesh, Cambodia, Indonesia, and Malaysia, but not for India.
Certain goods like aircraft, medical equipment, and specific food items are exempt from the Section 301 tariffs.
- Who
- United States Trade Representative (USTR), Directorate General of Foreign Trade (DGFT)
- What
- Imposition of 10% tariffs on India and other countries under Section 301
- When
- Thursday (specific date not mentioned)
- Where
- United States, India
- Why
- Citing importation of goods produced with forced labor and to address trade imbalances
US Trade Policy
Indian Trade Policy
Tariff Rates
US Trade Policy
The US has imposed a 10% tariff on goods from India under Section 301, citing forced labor concerns.
Indian Trade Policy
India has prohibited imports of goods produced using forced labor and is negotiating a trade deal with the US.
Textile Tariff-Rate Quotas
US Trade Policy
The US has established textile tariff-rate quotas (TRQs) for Bangladesh, Cambodia, Indonesia, and Malaysia, allowing them to import US cotton and textile goods duty-free for final manufacturing.
Indian Trade Policy
No such TRQs have been announced for India, potentially impacting its textile industry.
- Tariff Rate
- 10%
- Countries Affected
- India, Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, United Kingdom
- Exempted Goods
- Aircraft, engines, ground flight simulators, certain animal products, seeds for planting, vegetable products, unflavored instant coffee, in-quota sugar products, pig iron, certain ferrous/aluminum scrap waste, aluminium hydroxide, vanadium oxides/hydroxides, ash containing precious metals, chemicals such as certain fertiliser and pesticide inputs, pharmaceuticals and pharmaceutical ingredients, specific semiconductor manufacturing equipment, battery waste and scrap, worked shell, worn clothing or secondhand apparel, antiques, collectables, and art, Irish and Scotch whiskies, medical/surgical equipment, natural cork, silk yarns, pearls, precious stones, live animals, cut flowers, wood and rattan products
- Textile Tariff-Rate Quotas
- Bangladesh, Cambodia, Indonesia, Malaysia
- Duration of TRQs
- 3 years
Sources
US redraws tariff architecture: India faces 10% ‘forced labour’ levy
US imposes 10% tariff on goods imported from India, cites concerns about forced labour
India avoids higher US tariff, secures lower 10% rate. Here's how
United States Imposed 10% Tariffs On Goods Imported From India Over Issue Of Forced Labour
Here’s breaking down the Section 301 tariffs
US Imposes 10% Tariff On Indian Imports Over Forced Labour Concerns
India Secures Lower 10% US Tariff After Being Initially Slated for 12.5%
Trump Imposes New Tariffs To Punish 'Forced Labour'. How It Will Impact India
US imposes 10 percent tariff on Indian imports over forced labour concerns; India avoids higher 12.5 percent levy after policy change - Telegraph India
US slaps 10% tariff on Indian goods over forced labour concerns
US slaps 10% tariff on goods imported from India over forced labour concerns
