New Delhi: The United States has imposed a 10% tariff on goods imported from India and 16 other countries, citing concerns over the use of forced labour in the production of imported goods. The new trade measure was announced by the Office of the U.S. Trade Representative (USTR) under Section 301 of the U.S. Trade Act of 1974.
U.S. Trade Representative Jamieson Greer announced the decision on Friday, stating that the tariffs target countries that have allegedly failed to adequately prohibit and enforce restrictions on imports produced using forced labour. The move comes a day before the expiry of the temporary 10% additional tariffs that had been imposed on imports from all countries.
According to the USTR, the action was taken at the direction of U.S. President Donald Trump as part of the administration’s broader effort to strengthen trade enforcement and address human rights concerns linked to global supply chains.
“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 10% tariff applies to 17 countries, including India, Canada, the United Kingdom, Bangladesh and Pakistan. Earlier proposals had placed India in a category facing 12.5% tariffs, but the final decision reduced the rate to 10%.
The USTR’s Federal Register note acknowledged that India had amended its Foreign Trade Policy on June 14, introducing a ban on the import of goods produced using forced labour after the proposed tariffs were unveiled in June.
Despite the policy change, the United States proceeded with the tariffs, maintaining that additional enforcement measures were necessary.
The Trump administration initiated the investigation after the U.S. Supreme Court ruled in February that the administration’s earlier reciprocal tariffs imposed under emergency powers were unlawful. In response, the administration introduced temporary universal tariffs while launching fresh investigations under Section 301.
India has opposed the USTR’s investigations and maintained that such issues should instead be addressed through the ongoing India-U.S. bilateral trade agreement negotiations.
The United States remains India’s second-largest trading partner and the largest destination for Indian exports. According to official commerce data, bilateral goods trade between the two countries reached nearly $141 billion in 2025, with India’s exports accounting for $87.3 billion.
The latest tariff decision is expected to become another key issue in the ongoing trade discussions between New Delhi and Washington.
