The United States has imposed a 10 per cent tariff on goods imported from India under a wider trade action targeting products linked to forced labour practices. The measure covers India and 16 other countries and came into effect after Washington reviewed recent policy changes made by New Delhi regarding the import of goods produced using forced labour. 
The tariff is lower than the 12.5 per cent rate proposed by the US under Section 301 of the Trade Act earlier this year. The reduction follows India's amendment to its Foreign Trade Policy in the past week, introducing a prohibition on the import of goods manufactured using forced labour. The policy change came while the United States was investigating forced labour practices across 60 countries, including India. 
US President Donald Trump, in a memorandum issued on Thursday, said the US Trade Representative had advised that goods from these economies should attract a 10 per cent tariff to encourage stronger enforcement of prohibitions on products made using forced labour. 
The final action was announced by US Trade Representative Jamieson Greer, who imposed tariffs on 60 economies under Section 301 of the Trade Act of 1974 at the direction of President Trump. According to the USTR, the countries covered had failed to adequately prohibit and enforce restrictions on the import of goods produced through forced labour. 
The latest tariffs came into effect at 12:01 am on Friday, coinciding with the expiry of the temporary 10 per cent import tariff that had been applied to all countries. That temporary measure had been introduced after the US Supreme Court struck down the Trump administration's reciprocal tariffs imposed in 2025, ruling that the emergency powers used to introduce them were unlawful. 
Among the 60 economies covered under the new action, 17 countries, including India, Canada, the United Kingdom, Bangladesh and Pakistan, will face a 10 per cent tariff. The remaining 43 countries will be subject to a 12.5 per cent tariff. 
Countries that do not have laws prohibiting the import of goods produced using forced labour, including China, Japan and the United Kingdom, will attract the higher 12.5 per cent tariff. 
The US has also clarified that the forced labour tariffs will not apply to certain categories of imports. Exemptions include raw materials whose absence could affect domestic supply, products that may cause economy-wide disruptions, and goods that cannot be produced or grown in sufficient quantities within the United States. 
A Federal Register notice acknowledged India's decision to introduce a prohibition on imports made using forced labour after the US unveiled its proposed tariffs earlier this year. This policy amendment was considered while determining the final tariff rate applicable to India. 
The investigations leading to these tariffs were initiated after the US Supreme Court dismissed the Trump administration's reciprocal tariffs that had been imposed using emergency powers. Following that ruling, the administration introduced a temporary universal 10 per cent tariff for 150 days beginning on February 24 before replacing it with the current country-specific measures. 
Abhik Sengupta, programme officer at an industry body, said the reduction in the tariff from the originally proposed 12.5 per cent to 10 per cent was modest numerically but meaningful from a policy perspective. He said the change suggested that Washington was willing to adjust its enforcement approach while continuing to support the broader strategic direction of the India-US economic relationship. 
India has opposed both investigations initiated by the USTR and has maintained that such trade-related concerns should instead be addressed through the ongoing bilateral trade agreement negotiations between the two countries. 
The United States remains India's second-largest trading partner and its biggest export destination. According to India's Commerce Department, bilateral goods trade stood at nearly USD 141 billion in 2025, with India's exports valued at approximately USD 87.3 billion. 
The Washington Post has also reported that the Trump administration is expected to announce another round of tariffs in the coming weeks. The proposed measures are expected to target goods imported from countries that subsidise excess manufacturing capacity, a practice that US officials believe creates an oversupply of low-cost products in global markets and affects the competitiveness of American manufacturers. 
Source PTI