The US has made permanent its 10% tariff on imports from 60 trading partners, including India, following an investigation into forced labour. India's rate remains at 10%, lower than the proposed 12.5%.
The tariff follows a Section 301 investigation launched in March after the US imposed a temporary 10% tariff on all trading partners in February. The probe examined whether countries were doing enough to prevent imports made using forced labour.
A separate US investigation into excess manufacturing capacity remains ongoing and could lead to additional tariffs.
The US reduced India's proposed Section 301 tariff from 12.5% to 10% after New Delhi banned imports made using forced labour. US Trade Representative Jamieson Greer said the measure is intended to address human rights concerns and unfair trade practices.
The 10% tariff will apply to countries that have adopted or pledged to enforce forced labour import bans. It will cover about 70% of India's exports, including engineering goods, textiles, chemicals and gems and jewellery, while steel, aluminium and certain auto products will continue to face separate tariffs of 25% or 50%. A separate US investigation into excess manufacturing capacity could result in additional tariffs.
