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US Section 301 Tariff of 10% on Indian Goods

25 July 20261 min read
ECONOMYUS Section 301Tariff of 10% onIndian Goods25 July 2026safalsetu.com

Why in the news

Washington put a new levy on Indian exports, but at a lower rate than first proposed because of steps India took on forced labour and labour codes.

Key facts

  • Tariff: 10% under Section 301, effective 24 July 2026.
  • US reason: forced labour in supply chains not adequately policed.
  • Why 10% not 12.5%: DGFT’s 13 July 2026 Foreign Trade Policy change and progress on the four Labour Codes.

Reactions

GroupView
FIEOLower rate is a competitive edge over countries facing 12.5%
Gems and jewelleryWorried about profit margins and reputation
TextilesConcerned about margins and export competitiveness

Exam angle

  • Law invoked: Section 301 (US).
  • Indian actors: DGFT, FIEO.
  • Rates: proposed 12.5%, applied 10%.

Test yourself

1. What Section 301 tariff did the US impose on Indian goods from 24 July 2026?

India was placed in the 10% bracket instead of the proposed 12.5%.

2. Which Indian authority amended the Foreign Trade Policy to prohibit imports made using forced labour?

DGFT amended it on 13 July 2026.

3. Which body saw the lower tariff as a competitive advantage over countries at 12.5%?

FIEO viewed the 10% rate as an edge.