All you need to know about Trump’s 10% tariff on India and other countries over forced labour concerns
The United States has imposed a 10% tariff on goods imported from India and 16 other countries over concerns about the use of forced labour
The United States has imposed a 10% tariff on goods imported from India and 16 other countries over concerns about the use of forced labour in the production of such goods. U.S. Trade Representative Jamieson Greer announced the new tariffs on 60 economies under Section 301 of the Trade Act on Friday (July 24, 2026), a day before the expiry of the additional 10% levy imposed on imports from all countries. “The United States has had a forced labour import ban for nearly a century and rigorously enforces it. It is well past time for our trading partners to do the same,” Mr. Greer said. Replacement for Trump’s temporary tariffs? The new tariffs will come into effect as U.S. President Donald Trump’s temporary worldwide tariff of 10% expires at 12.01 a.m. New York time on Friday (July 24, 2026). Mr. Trump turned to the temporary levy after the Supreme Court struck down his most sweeping tariff measures in February. The administration has now invoked the more durable provisions of Section 301 of the Trade Act of 1974, which allows the President to impose tariffs and other sanctions on countries found to engage in “unjustifiable”, “unreasonable” or “discriminatory” trade practices. Mr. Trump relied on Section 301 during his first term to impose tariffs on China, and those measures withstood legal scrutiny. More tariffs under Section 301 may follow. The Office of the U.S. Trade Representative has launched an investigation into whether 16 countries, which together account for about 70% of U.S. imports, have overproduced goods, depressing prices and disadvantaging American firms in global markets.
The investigation is yet to be completed. Move to curb forced labour In a statement, the USTR said the action had been taken under Section 301 of the Trade Act of 1974 against 60 economies for failing to prohibit and effectively enforce restrictions on the import of goods produced with forced labour. “The action will begin to address both a human rights abuse and a trade-distorting practice, improving the welfare of workers everywhere,” Mr. Greer said. “As a result of these actions, the Trade Representative has advised me that the goods of these economies should be subject to a 10% tariff to further encourage effective enforcement of such prohibitions,” Mr. Trump said in a memorandum issued on Thursday (July 23, 2026). Two tariff slabs The new levies follow an investigation into the alleged failure of about 60 economies to prevent forced labour in their supply chains, which Washington argues has harmed American workers. Of the 60 economies affected, 17, including India, Canada, the United Kingdom, Bangladesh and Pakistan, will face a tariff of 10%. The remaining 43 economies will be subject to a tariff of 12.5%. Countries deemed not to have laws prohibiting the import of goods produced through forced labour, including China, the United Kingdom and Japan, will face tariffs of 12.5%. According to a notice published in the Federal Register, duties on products from the European Union and Taiwan will not exceed 10%, while tariffs on goods from Japan, Switzerland and South Korea will be capped at a minimum of 12.5%, in line with trade agreements reached with the United States.