The US imposed Section 301 tariffs of 10-12.5% across 60 economies over forced labour enforcement. India got the lowest 10% rate after amending its Foreign Trade Policy, down from a proposed 12.5%.
US Slaps 10% Forced Labour Tariff on India Under Sec 301
India dodged the higher band — just. A last-minute Foreign Trade Policy amendment cut Washington's proposed 12.5% forced-labour tariff down to 10%, the lowest rate in the action.
The United States has imposed new tariffs on 60 economies under Section 301 of the Trade Act of 1974, targeting countries it says have failed to enforce prohibitions on goods produced with forced labour. India was placed in the lowest 10% band.
How India Landed at 10%
The US Trade Representative had initially proposed a 12.5% tariff for India. Following public hearings and New Delhi's amendment to its Foreign Trade Policy to curb imports linked to forced labour, the final rate was lowered to 10%.
India is among 17 economies facing the 10% duty — the lowest under the action. Rates across the 60 economies range from 10% to 12.5%.
The Timing
The announcement came as Washington's baseline 10% tariff for all trading partners expired, meaning this becomes the operative rate on affected Indian goods.
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Support Our WorkWhat It Means for Exporters
Sectors with complex, multi-tier supply chains — textiles, leather, agriculture-linked processing — face the sharpest compliance pressure, since Section 301 action is about traceability as much as the tariff line itself.
The Bigger Signal
Landing in the lowest band while 43 other economies face higher rates gives Indian exporters a relative advantage. But it also sets a precedent: trade policy changes are now being made under direct tariff pressure. Details at Business Standard.
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