U.S. Section 301 Forced‑Labor Tariffs Hit 60 Economies, India Gets Lower Rate

The U.S. Trade Representative (USTR) has imposed Section 301 tariffs on imports from 60 economies that it says have failed to ban or effectively enforce against forced‑labor goods. The measures, which took effect on July 24, 2026, cover 99.4% of U.S. imports and apply at two tiers – a 10% duty for most countries and a 12.5% duty for a smaller group, with five economies limited to their normal most‑favoured‑nation (MFN) rates.

India is placed in the 10% tier, a narrower rate than the 12.5% applied to competitors such as China, Vietnam and Brazil. About 55% of Indian exports to the United States will still bear the additional duty, while the lower rate is presented as a modest diplomatic concession after India pledged to prohibit forced‑labour components in its imports. The tariff regime is intended to pressure foreign governments to improve forced‑labour enforcement and to protect U.S. commerce from products made with such practices.