Ministry of Commerce & Industry
Final US Section 301 Measures on Forced Labour: India Placed in Lower Tariff Tier at 10%
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Source-grounded summary
The United States Trade Representative announced on 23 July 2026 the final Section 301 measures on forced‑labour, imposing an additional 10 % ad valorem duty on imports from India – a reduction from the 12.5 % duty initially proposed on 2 June 2026. About 45 % of India’s exports to the United States, including generic pharmaceuticals, smartphones and products already covered by Section 232 (steel, aluminium, auto parts), remain exempt from the additional duty, while the remaining 55 % will attract the 10 % tariff, placing India in a lower tariff tier relative to most other economies. The measures are linked to ongoing negotiations for the India‑U.S. Bilateral Trade Agreement.