U.S. slaps 10% tariffs on goods imported from India over issue forced labour

The United States imposed a 10 percent tariff on goods purchased from India and 16 other countries due to the use of forced labor in the production of such products.

U.S. Trade Representative Jamieson Greer announced new tariffs for 60 countries under Section 301 of the Trade Act on Friday, July 24, 2026, one day before the 10% surcharges on all countries expire.

The USTR statement said Mr. Greer, at the direction of President Donald Trump, took the final action by imposing tariffs on 60 economies under Section 301 of the Trade Act of 1974 for their failure to prohibit and effectively ban imports of goods produced with forced labor.

Action will begin to correct both human rights violations and distorted trade practice to improve the well-being of workers everywhere,” Mr. Greer said in a statement here.

The 10 percent tariff rate applies to 17 countries, including India, Canada, the United Kingdom, Bangladesh and Pakistan. Previously, India was among the countries that imposed a customs duty of 12.5%.

In this context, a Federal Note noted that India adopted a forced labor import ban after the proposed tariffs were announced in June.

On June 14, India changed its foreign trade policy to ban imports of goods produced using forced labor.

The Trump administration launched the two investigations after the US Supreme Court, using emergency powers in February, rejected last year’s “reciprocal tariffs” as illegal. The administration responded by imposing a 10 percent tariff on all countries ending Friday, July 24.

India has both objected to the investigations initiated by the USTR and insisted that these issues can be discussed under the bilateral trade agreement being discussed.

The US is India’s second largest trading partner and largest export destination. According to commerce department data, bilateral goods trade is set to be around $141 billion in 2025, while India’s exports are set at $87.3 billion.