Washington cites inadequate enforcement against forced labour in supply chains as India faces lower tariff than initially proposed
The United States has imposed a 10 per cent tariff on goods imported from India, citing concerns over the country’s enforcement of measures to prevent forced labour in supply chains. The new duty forms part of a broader trade action affecting 60 trading partners under Section 301 of the US Trade Act of 1974.
The tariff, announced by the White House on Friday, replaces a temporary global tariff that had been in force while the US administration reviewed its trade policy. India is among 17 countries facing a 10 per cent levy, while 43 others, including China and the European Union, have been subjected to a higher tariff of 12.5 per cent.
According to the US administration, the decision follows an investigation which concluded that several countries had not taken sufficient action to prevent the production and trade of goods made using forced labour. Washington said the tariffs are intended to strengthen enforcement of labour standards and discourage unfair trade practices linked to human rights abuses.
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The 10 per cent tariff imposed on India is lower than the 12.5 per cent rate that had been proposed during earlier stages of the investigation, offering some relief to Indian exporters
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However, industry observers believe the measure could still increase costs for Indian products entering the US market and affect sectors with significant export exposure
The latest move comes as India and the United States continue discussions on strengthening bilateral trade ties. While the tariff decision introduces fresh uncertainty for exporters, trade negotiations between the two countries are expected to continue alongside efforts to address labour compliance and supply chain standards. Other major trading partners have also criticised the new US tariff regime, arguing that the measures could disrupt global commerce and increase costs for businesses and consumers.
