US President Donald Trump.
The US has imposed a 10% tariff on goods purchased from India and 16 other countries because forced labor was used in the production of these goods. US Trade Representative Jameson Greer today announced new tariffs on 60 countries under Section 301 of the Trade Act. This announcement was made a day before the expiry of the 10% additional tariff imposed on all countries.
The USTR statement said Greer, at the direction of President Donald Trump, took the final step of imposing tariffs on 60 economies under Section 301 of the Trade Act of 1974. These countries had failed to effectively enforce restrictions on the import of goods made with forced labour.
India was in the category of 12.5% tariff
“This step will be a start toward correcting human rights violations and unfair trade practices, thereby improving the well-being of workers everywhere,” Greer said in a statement here. The 10% tariff rate applies to 17 countries including India, Canada, UK, Bangladesh and Pakistan. Earlier, India was in the category of countries which were charged 12.5% tariff.
Ban on import of goods made through forced labor
A federal note on the matter noted that India had banned imports of goods made with forced labor after the proposed tariffs were announced in June. On June 14, India changed its foreign trade policy to ban the import of goods made with forced labour.
Tariffs declared illegal
The Trump administration launched these two investigations after the US Supreme Court in February ruled that last year’s reciprocal tariffs imposed using emergency powers were illegal. In response to this, the administration had imposed a 10 percent tariff on all countries, which is ending today.
Discussion under bilateral trade agreement
India has objected to both investigations initiated by USTR and has said that these issues can be discussed under the bilateral trade agreement which is currently being negotiated. America is India’s second largest trading partner and the largest market for exports. According to Commerce Department data, bilateral goods trade in 2025 was worth about US$141 billion, of which India’s exports were US$87.3 billion.
