US imposes 10% additional tariff on Indian imports:Action over forced labour concerns; 60 countries face new trade measures

The United States has imposed an additional 10% tariff on goods imported from India as part of a wider crackdown on products linked to forced labour. The new duties came into effect on Friday following action ordered by US President Donald Trump. The move was announced by the Office of the US Trade Representative (USTR) after an investigation under Section 301 of the US Trade Act of 1974, which allows Washington to take trade action against countries whose policies are considered unfair or harmful to American businesses. India among 17 countries facing 10% tariff The US has imposed additional tariffs ranging from 10% to 12.5% on imports from 60 countries. India is among 17 countries subject to an additional 10% tariff, while the remaining 43 countries face a 12.5% duty. Other countries in the 10% tariff category include the United Kingdom, Canada, Indonesia, Bangladesh, Mexico, Pakistan and Sri Lanka. According to the US, these countries have either banned goods made using forced labour or have taken steps to curb such imports. What is Section 301? Section 301 of the US Trade Act of 1974 authorises the US government to investigate and act against countries whose trade practices are deemed unfair, discriminatory or harmful to US commerce. The USTR conducts the investigation, seeks responses from the concerned country and holds consultations where necessary. Any trade action, including additional tariffs, import restrictions or other measures, requires approval from the US President. The latest investigation began in March and included consultations with more than 45 countries and a review of over 1,600 public submissions before the tariffs were finalised. Indian export sectors likely to be affected The US is India’s largest export market, making the additional tariff significant for sectors heavily dependent on American demand. Industries expected to be affected include: Textiles and garments Gems and jewellery Leather products Agriculture and food products Engineering goods Chemicals Manufacturing products The higher tariff is expected to make Indian goods more expensive in the US market, potentially reducing competitiveness, affecting export orders and putting pressure on exporters to lower prices. What is forced labour? Forced labour refers to work performed against a person’s will through coercion, threats, debt bondage, violence, confiscation of identity documents, withholding wages or preventing workers from leaving their jobs. The International Labour Organization (ILO) classifies forced labour as a serious violation of human rights. The US says goods linked to forced labour may face additional tariffs or import restrictions to encourage companies to eliminate forced labour from their supply chains. Similar action taken against other countries Washington has previously imposed strict import restrictions on products linked to forced labour, particularly goods from China’s Xinjiang region, including cotton, tomatoes and solar panels. Other sectors that have come under US scrutiny include seafood, palm oil, rubber, cocoa, textiles and mining. India receives lower tariff after policy changes According to US officials, India was initially expected to face an additional 12.5% tariff. However, the duty was reduced to 10% following discussions on labour standards and changes to India’s trade policy. A US federal note said India amended its foreign trade policy on June 14 to prohibit imports of goods made using forced labour. The policy change was taken into account while determining the final tariff rate.