US places affected Indian imports in 10% forced-labour tariff tier

India says the US has set a 10% additional Section 301 tariff on affected imports, down from an initially proposed 12.5%. About 45% of India’s exports to the US, including generic drugs and smartphones, are exempt; textiles remain under negotiation.

— Source publishedSat, 25 Jul, 2026, 16:36 IST·First seen Sat, 25 Jul, 2026, 16:42 IST·Source The Hindu BusinessLine

What happened

Government of India · The US set a 10% Section 301 forced-labour tariff on affected Indian imports, below the initially proposed 12.5%. Exemptions cover 45% of

Key facts

  • 10% additional tariff on imports from India
  • 12.5% initially proposed tariff
  • 45% of India's exports to the US exempt from the additional duty
  • 55% of exports subject to the additional duty
  • 60 economies investigated
  • July 23
  • February 2, 2026
  • February 7, 2026

Why this matters

Corporate-development teams can pursue India-linked sourcing, distribution, and supplier partnerships with greater confidence in exempt categories, while structuring textile deals around tariff-negotiation contingencies.

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