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PoliticsUS imposes 10% tariffs on India, 16 other nations over forced labour concerns
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On July 24, 2026, the United States Trade Representative Jamieson Greer announced 10% tariffs on goods imported from India and 16 other countries, citing the use of forced labour in production. The action was taken under Section 301 of the Trade Act of 1974 at President Donald Trump's direction, targeting 60 economies for failing to enforce prohibitions on forced labour-tainted imports. India, previously facing 12.5% tariffs, was included in the 10% bracket alongside Canada, the UK, Bangladesh, and Pakistan. The announcement came a day before the expiration of 10% additional levies on all countries. India had amended its foreign trade policy on June 14 to prohibit forced labour imports after the proposed tariffs were unveiled. India has contested the investigations, arguing the issues should be discussed within the bilateral trade agreement. The U.S. is India's second-largest trade partner, with bilateral goods trade reaching nearly $141 billion in 2025.
Source report
Updated: July 24, 2026 — 04:41 am IST Source: PTI | Washington
The United States has imposed 10% tariffs on goods imported from India and 16 other countries, citing the use of forced labour in the production of such items.
U.S. Trade Representative Jamieson Greer announced the new tariffs on 60 countries under Section 301 of the Trade Act on Friday (July 24, 2026), one day before the expiration of the existing 10% additional levies applied to all nations.
Key Details
- Tariff Rate: 10% on goods from 17 countries, including India, Canada, the U.K., Bangladesh, and Pakistan.
- Previous Rate for India: India was previously grouped with countries facing 12.5% tariffs.
- Legal Basis: Section 301 of the Trade Act of 1974, at the direction of President Donald Trump.
USTR Statement
In a statement, Mr. Greer said the action targets both a human rights abuse and a distortive trade practice, adding:
"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."
The USTR noted that the final action was taken against 60 economies for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.
India's Response and Policy Change
- A Federal Note acknowledged that India adopted a forced labour import prohibition after the proposed tariffs were unveiled in June.
- On June 14, India amended its foreign trade policy to prohibit the import of goods produced using forced labour.
- India has contested both investigations initiated by the USTR and has insisted that these issues can be discussed as part of the bilateral trade agreement currently under negotiation.
Background
The Trump administration launched the two investigations after the U.S. Supreme Court, in February, ruled that last year's "reciprocal tariffs" imposed using emergency powers were illegal. In response, the administration levied 10% tariffs on all countries, which expire on Friday (July 24).
Bilateral Trade Context
- The U.S. is India's second-largest trade partner and the largest destination for Indian exports.
- In 2025, bilateral goods trade was valued at nearly $141 billion.
- India's exports to the U.S. stood at $87.3 billion, according to commerce department data.
Published — July 24, 2026 — 04:39 am IST
Source
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U.S. imposes 10% tariffs on India and 16 other nations over forced labour concerns