The Trump administration has imposed new tariffs on imports from 60 economies, including India, in a move tied to concerns over forced-labor enforcement. The duties are set at 10% and 12.5%, depending on the country’s compliance status.
India will face the lower 10% rate after recent policy changes, according to reports. The new duties are being introduced under Section 301 of the Trade Act of 1974 and are set to take effect at 12:01 a.m. EDT on Friday, replacing the temporary 10% global tariff that expires at the same time.
The policy targets countries that the US says have not done enough to block goods made with forced labor from entering supply chains. Economies with adequate bans, or partial restrictions and commitments to act, will face the lower rate, while others will be hit with the higher 12.5% duty.
The move adds another layer of pressure to trade relations with India, which has already been engaged in tariff negotiations with Washington this year. US and Indian officials earlier reached a framework that reduced reciprocal tariffs on Indian goods to 18% and removed an additional 25% duty, but the latest measures point to renewed friction in the bilateral trade agenda.
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