US Tariffs India Forced Labor In a major trade development, United States Trade Representative (USTR) Jamieson Greer announced a 10 percent tariff on goods imported from India and 16 other countries over allegations concerning the use of forced labour in production chains. The executive action, executed under Section 301 of the Trade Act of 1974 at the direction of US President Donald Trump, targets a total of 60 trading partners to enforce labor compliance and address trade distortions.
US Tariffs India Forced Labor – Revised Tariff Rates and India’s Foreign Trade Policy Adjustment
India was previously grouped among nations facing a 12.5 percent levy, but the finalized rate was set at 10 percent following recent regulatory updates from New Delhi. A US Federal Note acknowledged that India amended its Foreign Trade Policy on June 14 to explicitly prohibit the import and production of goods made using forced labour. The 10 percent tariff tier applies to 17 countries, including major trading partners such as Canada, the United Kingdom, Bangladesh, and Pakistan.
US Tariffs India Forced Labor – Background on Legal Challenges and Section 301 Enforcements
The latest trade action follows two comprehensive investigations initiated by the Trump administration after the US Supreme Court invalidated last year’s emergency reciprocal tariffs in February. In response to the judicial ruling, the administration introduced interim 10 percent baseline tariffs across all trading partners, which expired on July 24. The new Section 301 measures establish a revised regulatory framework intended to penalize non-compliant supply chains globally.
US Tariffs India Forced Labor – Bilateral Trade Impact and Ongoing Strategic Negotiations
India has contested the USTR findings as inconsistent and argued that trade policy and labor standards should be addressed through ongoing bilateral negotiations. The United States remains India’s primary export destination, with bilateral goods trade reaching approximately $141 billion in 2025—including $87.3 billion in Indian exports. While the tariffs apply broadly, the US government has exempted around 1,600 critical items from the duties to minimize supply chain disruptions for key industrial sectors.
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