India will encounter a reduced 10% tariff under the Trump administration’s new Section 301 enforcement action on forced labor imports. The United States determined that India had implemented a forced labor import prohibition during the investigation, placing it in a more favorable category compared to many other trading partners.
The Office of the US Trade Representative (USTR) disclosed that tariffs are being imposed on imports from 60 economies for failing to enforce bans on goods produced with forced labor. The new duties, effective from July 24, range from 10% to 12.5%, depending on each country’s forced labor import regime.
India is among 17 economies facing the lower 10% tariff, along with countries like Bangladesh, Canada, Indonesia, and the United Kingdom. The USTR noted that India entered this category after adopting a forced labor import prohibition subsequent to the agency’s proposed action in June.
President Trump emphasized the need for global trading partners to eradicate forced labor from supply chains. The US has enforced a forced labor import ban for nearly a century, and it expects similar actions from its partners to address this human rights abuse and trade distortion.
The investigation into 60 economies, initiated on March 12, concluded that their acts, policies, and practices were unreasonable and restricted US commerce. Countries like Cambodia, Guatemala, and Sri Lanka also adopted forced labor import prohibitions during this process. Most other economies, including China and Australia, will face a 12.5% tariff.
