The United States has imposed a 10 per cent tariff on goods imported from India, along with imports from 16 other countries, under a new trade measure aimed at combating the use of forced labour in global supply chains.
The tariffs were announced on Thursday by US Trade Representative Jamieson Greer under Section 301 of the Trade Act of 1974 and will take effect at 12.01 am Friday, coinciding with the expiry of a temporary 10 per cent import tax imposed earlier this year.
India was initially proposed to face a 12.5 per cent tariff when the USTR unveiled the plan in June.
However, Washington reduced the rate to 10 per cent after New Delhi amended its foreign trade policy on June 14 to prohibit the import of goods produced using forced labour.
"As a result of these actions, the Trade Representative has advised me that the goods of these economies should be tariffed at the 10 per cent rate to further encourage these economies to effectively enforce such prohibitions," US President Donald Trump said in a memorandum issued on Thursday.
The USTR has imposed the tariffs on 60 economies for "their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour."
Of these, 17 countries—including India, Canada, the United Kingdom, Bangladesh and Pakistan—will face a 10 per cent tariff, while the remaining 43 will be subject to a 12.5 per cent levy.
Countries that do not have laws prohibiting imports made with forced labour, such as China, the United Kingdom and Japan, will attract the higher 12.5 per cent tariff.
The tariffs will not apply to raw materials whose restriction could create domestic supply shortages, products that could trigger economy-wide disruptions, or goods that cannot be produced or grown in sufficient quantities in the United States.
Greer said the move was intended to address both labour rights violations and unfair trade practices.
"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," he said in a statement.
The latest action follows two Section 301 investigations launched by the Trump administration after the US Supreme Court in February struck down the administration's 2025 "Liberation Day" reciprocal tariffs imposed under emergency powers. In response, the administration introduced a temporary 10 per cent tariff on imports from all countries, which expires on Friday.
A Federal Register notice acknowledged India's policy change after the proposed tariffs were unveiled in June, citing the June 14 amendment to its foreign trade policy banning imports of goods produced using forced labour.
Commenting on the revised tariff, Abhik Sengupta, a programme officer with an industry body in Washington, said, "A reduction in the tariff from 12.5 per cent to 10 per cent is modest in percentage points but significant in signalling. It suggests that Washington is willing to calibrate enforcement while preserving the strategic trajectory of the India–US economic partnership."
India has opposed the USTR investigations and maintains that the issues should be addressed as part of the bilateral trade agreement currently under negotiation.
The United States is India's second-largest trading partner and its largest export destination. Bilateral goods trade stood at nearly USD 141 billion in 2025, including Indian exports worth USD 87.3 billion, according to commerce department data.
(With inputs from PTI)