US Introduces 10 Percent Tariff on Indian Goods Under Forced Labour Trade Rules

The United States has announced a 10 percent tariff on certain imports from India under its forced labour trade policy, replacing the temporary global tariff that expired this week. The revised measure is part of a broader trade action covering multiple economies.

According to US officials, the decision was taken under the country’s forced labour enforcement framework. Ambassador Jamieson Greer said the United States expects its trading partners to adopt similar restrictions on products linked to forced labour practices.

India, however, has questioned the justification behind the tariff. Trade experts noted that the country had already updated its Foreign Trade Policy in June to prohibit the import of goods produced through forced or compulsory labour. They argued that Indian laws also contain constitutional and legal safeguards against forced labour.

Although the tariff rate applicable to India was reduced from the earlier proposed level of 12.5 percent to 10 percent, Indian textile exports did not receive the tariff rate quota benefit available to certain other countries using United States sourced cotton and fibre.

The latest trade measures cover imports from several economies, with different tariff levels based on the outcome of the US review. Some categories, including specific medical products, industrial materials, agricultural inputs and humanitarian goods, have been kept outside the scope of the new duties.

Trade observers are also watching the outcome of another ongoing United States investigation into manufacturing capacity, which could result in additional tariffs on a wider range of imported industrial products in the coming months.