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Trump Imposes New Tariffs on India, China, 60 Nations Over Forced Labor

US President Donald Trump imposed fresh tariffs of 10% to 12.5% on over 60 trading partners, including India and China, citing forced labor concerns. India avoided the higher duty after introducing import restrictions.

Written By : Somatirtha
Reviewed By : Aishwarya Avsk

US President Donald Trump has announced a fresh round of tariffs on imports from at least 60 trading partners, including India, China, Japan, and the United Kingdom, citing concerns over the inadequate enforcement of bans on goods produced through forced labor. The new duties, ranging from 10 percent to 12.5 percent, will take effect at 12:01 AM Friday, replacing temporary import taxes that expire the same day.

The move follows a February Supreme Court ruling that struck down Trump’s ‘Liberation Day’ tariffs imposed in April 2025. The administration has framed the latest action as part of its effort to curb forced labor and encourage trading partners to adopt stricter import regulations.

How the New Tariff Structure Works

Countries such as China, the United Kingdom, and Japan, which the White House says lack laws prohibiting imports made with forced labor, will face 12.5 percent tariffs. Meanwhile, economies including India, Sri Lanka, and the European Union will continue to face 10 percent tariffs after introducing or committing to forced labor import restrictions.

Some imports, including products covered under the US-Mexico-Canada Agreement (USMCA) and oil and gas shipments, have been exempted from the latest tariff measures.

US Defends Move as Human Rights Measure

“The United States has had a forced labor import ban for nearly a century, and rigorously enforces it. It’s well past time for our trading partners to do the same,” US Trade Representative Jamieson Greer said.

“Today’s action will begin to correct what is both a human rights abuse and a distortive trade practice to improve the welfare of workers everywhere,” he added.

Also Read: Indian Pharma Stocks Slide as Trump Unveils Tariffs of Up to 200% on Generic Drug Imports

India Avoids Higher Tariff

For India, the latest announcement means exports to the US will continue to attract a 10 percent tariff, avoiding the additional 12.5 percent penalty that Trump had previously threatened.

The White House said India, along with Cambodia, Guatemala, Honduras, Sri Lanka, and Trinidad and Tobago, had introduced forced labor import prohibitions or made commitments under reciprocal trade agreements, leading to the lower tariff rate.

More Trade Measures Expected

According to a Washington Post report, the Trump administration is preparing another round of tariffs targeting countries accused of subsidizing excess manufacturing capacity. The proposed measures are expected to focus on low-cost imports that US officials argue disadvantage American manufacturers, signaling that more trade actions could be announced in the coming weeks.

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