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GTRI Questions US 10% Section 301 Tariff on Indian Exports, Says Measure Lacks Credible Evidence

GTRI says the measure lacks evidence and will leave about 70% of Indian exports facing the normal tariff plus the new duty.

  • On Friday, July 24, 2026, the United States implemented a 10 per cent Section 301 tariff on Indian imports, replacing the expiring 10 per cent global Section 122 duty affecting 17 economies including Canada and the United Kingdom.
  • The United States imposed these tariffs citing a forced-labour investigation, though the Global Trade Research Initiative argues the measure lacks factual evidence and serves to preserve the Trump administration's tariff wall.
  • India amended its Foreign Trade Policy in June 2026 to prohibit forced-labour imports, reducing the proposed tariff from 12.5 per cent to 10 per cent; around 70 per cent of Indian exports remain subject to the new duty.
  • Unlike Bangladesh, Cambodia, Indonesia, and Malaysia, India has been excluded from textile tariff-rate quota exemptions for goods using US-origin cotton. Around 8 per cent of India's exports, including steel and auto components, continue facing tariffs of 25-50 per cent.
  • Ambassador Jamieson Greer stated the United States has enforced a forced-labour import ban for nearly a century, asserting that trading partners must now do the same. This positions the tariff regime as long-term enforcement for the Trump administration.
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The United States has imposed an additional 10% tariff on imports from India, taking action against products linked to forced labor. This decision, effective July 24th, was made following a review directed by Donald Trump.

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Times of India broke the news in India on Tuesday, July 21, 2026.
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