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International
US Imposes 10% Forced‑Labour Tariff on India, Matching Pakistan, Sri Lanka, Bangladesh
✍️ Hindustan Times
🗓 24 Jul 2026, 07:05 AM
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The United States has levied a 10% tariff on Indian goods under a Section 301 investigation into forced labour, placing India alongside Pakistan, Sri Lanka and Bangladesh in the list of affected economies.
The U.S. Department of Commerce announced today that it will impose a 10% tariff on a range of Indian products as part of a Section 301 investigation into forced labour practices. The move brings India into the same category as Pakistan, Sri Lanka and Bangladesh, as well as several Latin American and Asian economies already subject to similar duties.
Under Section 301 of the Trade Act of 1974, the United States can impose tariffs on countries that violate trade laws or engage in unfair trade practices. The investigation cited evidence that certain Indian industries rely on forced labour, prompting the U.S. to take enforcement action.
The new tariff will affect a broad spectrum of goods, potentially increasing costs for Indian exporters and raising concerns among manufacturers and trade associations. Indian officials have indicated that they will review the findings and engage with U.S. authorities to address the allegations.
The decision is expected to influence trade flows between the two countries and may prompt India to strengthen labour compliance measures to mitigate further trade disruptions.
Under Section 301 of the Trade Act of 1974, the United States can impose tariffs on countries that violate trade laws or engage in unfair trade practices. The investigation cited evidence that certain Indian industries rely on forced labour, prompting the U.S. to take enforcement action.
The new tariff will affect a broad spectrum of goods, potentially increasing costs for Indian exporters and raising concerns among manufacturers and trade associations. Indian officials have indicated that they will review the findings and engage with U.S. authorities to address the allegations.
The decision is expected to influence trade flows between the two countries and may prompt India to strengthen labour compliance measures to mitigate further trade disruptions.