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US hits India with 10% ‘forced labour’ tariff under section 301: Which Industries face biggest impact and what happens next?

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The US has targeted India once again with fresh tariffs under Section 301 of the Trade Act. Donald Trump administration has imposed a 10% tariff on imports from India after concluding a months long investigation into forced labour practices. The new duty is lower than the 12.5% rate that was initially proposed for India. With this move, India joins more than 60 countries facing similar action as Washington steps up enforcement against goods linked to forced labour.

Why has the US imposed the new tariff?

The latest tariff follows a Section 301 investigation conducted by the Office of the United States Trade Representative into forced labour practices. US has imposed a 10% tariff on imports from India along with countries such as Pakistan, Bangladesh and Sri Lanka. According to the US administration, the measure applies to countries that failed to effectively prevent the import of goods produced using forced labour. The new tariff replaces the temporary 10% global tariff introduced in February, which has now expired.

First published on: Jul 24, 2026 07:25 AM IST



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