India secures lower 10% US tariff after being initially slated for 12.5%

The United States has imposed new tariff slabs of 10% and 12.5% on goods from 60 economies, citing their failure to adequately prohibit imports produced with forced labor. India, initially facing a 12.5% tariff, successfully negotiated its way into the lower 10% category following productive discussions with US officials regarding labor practices.

This move by the Office of the US Trade Representative (USTR) is part of President Donald Trump's directive under Section 301 of the Trade Act of 1974. This section grants the USTR authority to take punitive actions against nations engaging in unfair trade practices. The tariffs are set to take effect on Friday.

India is among 17 economies, including the United Kingdom, Canada, Indonesia, and Mexico, that will be subject to the 10% tariff. These economies either have a forced labor import prohibition, have committed to one through trade agreements, or have implemented a partial regime to prevent such imports. The USTR noted that decades of "moral suasion" have not eradicated forced labor from global supply chains, prompting this action.

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