
India secured a 10% tariff rate under new U.S. Section 301 country duties, avoiding a higher 12.5% bracket after talks on labor practices. The rates take effect Friday.
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The United States on Thursday set new tariff rates on roughly 60 countries under Section 301, placing India in the lower 10% bracket. The duties, announced by the U.S. Trade Representative, range from 10% to 12.5% and take effect Friday.
India secured the 10% rate after initial discussions that had placed it in the higher 12.5% category, news agency ANI reported, citing officials. The talks centered on labor practices. The new tariff applies alongside 16 other countries including Argentina, Bangladesh, Canada, Indonesia, Malaysia, Mexico, Pakistan, Sri Lanka, and the United Kingdom.
The action follows President Donald Trump's directive targeting what the administration called inadequate measures to prohibit imports produced with forced labor. The higher 12.5% rate applies to a separate group of nations.
A USTR official said the country-by-country rates reflect the administration's assessment of each trading partner's compliance with labor standards. India's placement in the lower bracket signals that Washington viewed New Delhi's recent labor-law changes as a partial step, the official added.
The tariff announcement is the latest escalation in Trump's trade policy, which has expanded the use of Section 301 beyond its traditional China focus to a broader set of nations. The European Union, Japan, and several other major U.S. trading partners are among those facing the higher rate.
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