GUWAHATI: The United States has imposed a 10% tariff on goods imported from India under new forced labour enforcement measures announced by the Office of the U.S. Trade Representative (USTR) under Section 301 of the Trade Act of 1974.
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The tariffs, announced by U.S. Trade Representative Jamieson Greer, took effect on July 24, a day before the expiry of the temporary 10% import levy imposed on all countries.
India was initially set to face a 12.5% tariff when the proposal was unveiled in June. However, the rate was reduced to 10% after New Delhi amended its Foreign Trade Policy on June 14, prohibiting the import of goods produced using forced labour.
According to the USTR, the tariffs target countries that have failed to adequately prohibit or enforce restrictions on the import of goods made using forced labour. The U.S. said the move is aimed at addressing both human rights concerns and unfair trade practices.
Of the 60 economies covered under the new measures, 17 countries, including India, Canada, Bangladesh, Pakistan and the United Kingdom, will face a 10% tariff, while the remaining 43 economies will be subject to a 12.5% tariff.
The new tariffs do not apply to certain raw materials and products where restrictions could lead to domestic shortages, economy-wide disruptions, or where sufficient quantities cannot be produced in the United States.
India has opposed the USTR's investigations and maintains that such issues should be resolved through the ongoing bilateral trade agreement negotiations with the United States.
The U.S. remains India's second-largest trading partner and its largest export destination, with bilateral goods trade reaching nearly USD 141 billion in 2025, including USD 87.3 billion worth of Indian exports.