Trump Introduces New Tariffs on 60 Economies Amid Forced Labour Issues
US President Donald Trump has implemented new tariffs on imports from 60 economies, citing concerns over forced labor practices. India is among 17 countries that will face a reduced tariff rate of 10%, down from the initially proposed 12.5%. The tariffs took effect at 12:01 AM EDT on Friday, replacing a temporary blanket tariff that was set to expire at the same time.
The Office of the US Trade Representative (USTR) announced that goods already in transit before the deadline will remain exempt from the new tariffs until July 28. Of the 60 economies affected, 17 will incur a 10% tariff, while the remaining 43 will face a higher levy of 12.5%. Other countries in the 10% category include Canada, the United Kingdom, and Mexico.
India’s qualification for the lower tariff rate follows recent policy changes aimed at addressing forced labor in its supply chains. A US official indicated that India was initially slated for the higher tariff but was moved to the lower category after discussions regarding labor practices and policy adjustments in New Delhi. The USTR’s investigations into these labor practices began on March 12, 2026, under Section 301 of the Trade Act, which allows the US to impose tariffs if foreign trade practices unfairly burden American commerce.
The 60 economies subjected to these new US tariffs include Algeria, Angola, Argentina, Australia, the Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Canada, Chile, China, Colombia, Costa Rica, the Dominican Republic, Ecuador, Egypt, El Salvador, the European Union, Guatemala, Guyana, Honduras, Hong Kong, India, Indonesia, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Malaysia, Mexico, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Pakistan, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Trinidad and Tobago, Türkiye, the United Arab Emirates, the United Kingdom, Uruguay, Venezuela, and Vietnam.
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