US Imposes 10% Tariff on Indian Imports
The United States has imposed a 10% additional tariff on imports from India under a Section 301 investigation concerning the enforcement of bans on goods produced using forced labour.
US Imposes 10% Tariff on India
The new duty applies to India and 16 other economies that have introduced complete or partial restrictions on forced-labour imports or committed to implementing such measures.
India secured the lower 10% rate after Washington initially proposed a tariff of 12.5%. New Delhi recently amended its Foreign Trade Policy to prohibit imports of goods manufactured wholly or partly through forced labour.
The measure does not specifically accuse Indian exporters of using forced labour. The investigation examined whether trading partners had established and effectively enforced restrictions against importing goods linked to such practices.
Section 301 Forced Labour Investigation
The United States launched investigations into 60 economies in March 2026 under Section 301 of the Trade Act of 1974. The provision allows Washington to respond to foreign policies or practices it considers unreasonable, discriminatory or harmful to US commerce.
The review included consultations with more than 45 governments, two rounds of public hearings and over 2,100 public submissions.
India, the United Kingdom, Canada, Mexico, Pakistan, Bangladesh, Sri Lanka and Indonesia are among the economies receiving the 10% rate. Other investigated economies will generally face duties of 12.5%.
Product Exemptions Under US Tariffs
The tariffs replace the temporary 10% global levy that expired this week. However, several product categories are exempt from the new duties.
Exclusions cover essential raw materials that are unavailable domestically, goods whose taxation could cause wider economic disruption and products that cannot be produced in sufficient quantities or at reasonable prices in the United States.
The tariff action could influence ongoing India-US trade negotiations. Both countries have been working towards a broader agreement, although the completion of American Section 301 investigations had delayed its signing.
