US Section 301 Tariff of 10% on Indian Goods
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
| Group | View |
|---|---|
| FIEO | Lower rate is a competitive edge over countries facing 12.5% |
| Gems and jewellery | Worried about profit margins and reputation |
| Textiles | Concerned about margins and export competitiveness |
Exam angle
- Law invoked: Section 301 (US).
- Indian actors: DGFT, FIEO.
- Rates: proposed 12.5%, applied 10%.