US Imposes 10% Import Tariff On Indian Goods Over Forced Labour Concerns

US Imposes 10% Import Tariff On Indian Goods Over Forced Labour Concerns

The United States has announced new tariffs on 60 trading partners, including India, China and the European Union, over concerns related to forced labour practices. The duties, ranging between 10% and 12.5%, will cover nearly all US trade and replace temporary tariffs introduced earlier by President Donald Trump

FPJ Web DeskUpdated: Friday, July 24, 2026, 11:42 AM IST
US Imposes 10% Import Tariff On Indian Goods Over Forced Labour Concerns

The United States on Thursday announced a fresh round of tariffs on 60 trading partners over concerns related to forced labour, replacing a temporary global duty introduced earlier by President Donald Trump.

The new tariffs, announced by the US Trade Representative (USTR), will come into effect from 12:01 am Eastern Time on Friday. According to a USTR fact sheet, the duties range between 10% and 12.5% and will apply to around 99.4% of US trade.

Major economies, including India, China and the European Union, are among those affected by the latest measures.

US Trade Representative Jamieson Greer said Washington has maintained a forced labour import ban for nearly a century and argued that trading partners should adopt similar measures.

The Trump administration moved quickly to restore its tariff framework after the US Supreme Court struck down several earlier duties imposed by the president in February.

Following that setback, the administration introduced a temporary 10% tariff using alternative legal authority, but the measure was set to expire after 150 days.

The newly announced tariffs, which were first proposed in June, are based on a months-long investigation and are expected to face fewer legal challenges compared with previous measures.

Countries that have implemented forced labour import restrictions or committed to introducing such rules will face the lower 10% tariff rate. This group includes India, Canada, the European Union and the United Kingdom.

Several other countries, including China, Japan and South Korea, will face the higher 12.5% tariff. However, some economies such as Japan, South Korea, Taiwan, Switzerland and the EU will receive partial relief due to existing trade agreements with the US.

The tariff action is part of Washington’s broader push to ensure stronger enforcement of supply chain standards and prevent goods produced using forced labour from entering the American market.

Certain categories of goods will remain exempt from the new duties. Products already subject to separate sector-specific tariffs, including steel and aluminium, will not be affected. Some energy products, fertilisers and goods covered under the US-Mexico-Canada free trade agreement will also receive exemptions.

The latest move could have implications for global trade flows as businesses assess the impact of higher import costs and changing compliance requirements.