Washington: US President Donald Trump has announced a fresh round of tariffs on imports from more than 60 trading partners, citing concerns over the enforcement of laws banning goods produced through forced labour. Under the new measures, India will face a 10 per cent tariff, while countries including China, Israel, the United Kingdom and Japan will be subject to 12.5 per cent tariffs if they lack comparable import restrictions on forced labour products.
The White House said the tariffs are intended to encourage stronger enforcement of forced labour import bans and promote fair trade practices. The new duties take effect as temporary tariffs imposed earlier by the Trump administration expire.
Why India faces a lower tariff
According to the White House, India has been placed in the 10 per cent tariff category because it has either introduced or committed to enforcing measures prohibiting imports made using forced labour.
The administration said that following its review, countries including India, Sri Lanka, Cambodia, Guatemala, Honduras and Trinidad and Tobago had taken steps to strengthen forced labour import restrictions.
“As a result of these actions, the Trade Representative has advised me that the goods of these economies should be tariffed at the 10 per cent rate to further encourage these economies to effectively enforce such prohibitions,” the White House said.
The decision means Indian exports will continue to face a 10 per cent levy rather than the higher 12.5 per cent tariff that had earlier been under consideration.
China, Israel and others face 12.5% tariff
Countries that do not have laws restricting imports of goods produced through forced labour will be subject to 12.5 per cent tariffs.
The White House said the higher rate applies to countries such as China, Israel, the United Kingdom and Japan, arguing that stronger enforcement of forced labour regulations is necessary to ensure fair competition and protect workers’ rights.
The administration maintained that the tariffs are linked to labour standards rather than traditional trade disputes.
Tariffs take effect immediately
The latest measures came into force at 12.01 am Friday, coinciding with the expiry of temporary tariffs imposed after a US Supreme Court ruling earlier this year invalidated parts of Trump’s previous tariff regime.
The White House described the new order as a revised legal framework designed to withstand judicial scrutiny while advancing the administration’s trade agenda.
Some imports, including products covered under the US-Mexico-Canada Agreement (USMCA) and certain oil and gas shipments, have been exempted from the new tariffs.
US cites forced labour concerns
US Trade Representative Jamieson Greer defended the move, saying the United States has long maintained strict prohibitions on importing goods made through forced labour.
“The United States has had a forced labour import ban for nearly a century, and rigorously enforces it. It’s well past time for our trading partners to do the same,” Greer said.
He added that the measures are intended to address both human rights concerns and trade distortions caused by the use of forced labour.
More trade measures expected
According to reports, the Trump administration is preparing another round of tariffs targeting imports from countries accused of heavily subsidising manufacturing industries.
The proposed measures are expected to focus on products that the administration believes are being exported at artificially low prices due to government support, making it difficult for American manufacturers to compete.
Analysts believe the latest tariff package forms part of Trump’s broader strategy to reduce US dependence on imports while encouraging domestic manufacturing and strengthening supply chains.
Impact on India
For India, the announcement provides some relief compared to the previously proposed higher tariff rate.
However, the 10 per cent levy is still expected to increase costs for Indian exporters selling goods in the US market. Industry experts say sectors such as engineering goods, textiles, pharmaceuticals and consumer products will closely monitor how the revised tariff structure affects export competitiveness in the coming months.
