Trade Win: U.S. Cuts India’s Tariff From 12.5% To 10%

US President Donald Trump has announced new double‑digit tariffs on at least sixty of America’s trading partners, including India, China and the United Kingdom. The administration claims these nations have inadequately enforced bans on goods produced by forced labour.
The United States will impose taxes ranging from ten per cent to twelve and a half per cent on imports from these countries. Critics argue that this is part of a broader campaign to reduce reliance on imports and to protect American workers.
The announcement was expected and coincided with the expiry of temporary levies introduced after a Supreme Court defeat. The White House order stated that countries such as China, the United Kingdom and Japan, which do not have laws barring the import of goods produced with forced labour, will face tariffs of twelve and a half per cent. Nations that have enacted such laws, including India, Sri Lanka and the European Union, will face ten per cent levies if they fail to enforce them effectively.
Certain imports are exempted from the new measures. Products covered under the US‑Mexico‑Canada Agreement and oil and gas shipments will not be subject to the tariffs. This exemption reflects the administration’s effort to balance trade restrictions with energy and regional trade commitments.
The timing of the tariffs is significant. They took effect at 12:01 am on Friday, the exact moment the temporary ten per cent import tax expired. That earlier measure had been introduced after a February Supreme Court judgement invalidated Trump’s “Liberation Day” tariffs of April 2025. The administration emphasised that the latest action stems from Trump’s long‑standing opposition to involuntary labour.
US Trade Representative Jamieson Greer stated that the United States has enforced a forced labour import ban for nearly a century. He argued that it is time for trading partners to do the same. Greer described the new tariffs as a step towards correcting human rights abuses and distortive trade practices, aiming to improve the welfare of workers globally.
For India, the total tariff remains at ten per cent. Imports from India had been subject to a standard ten per cent surcharge imposed after the Supreme Court ruling, which expired today. Trump had previously threatened to impose an additional twelve and a half per cent penalty tariff on India over concerns about forced labour enforcement.
However, the White House clarified that following the publication of the Notice of Determinations, economies such as Cambodia, Guatemala, Honduras, India, Sri Lanka and Trinidad and Tobago have imposed prohibitions or undertaken commitments regarding forced labour imports. Jordan has also made commitments under an Agreement on Reciprocal Trade. As a result, these economies will be tariffed at the ten per cent rate to encourage enforcement.
Reports suggest that more tariffs are on the horizon. According to the Washington Post, the administration is preparing another set of levies targeting countries that subsidise excess manufacturing capacity.
Such subsidies lead to a flood of low‑cost products on global markets, undermining US companies. Trump appears determined to rebuild the tariff wall dismantled by the Supreme Court in February, this time using legal frameworks considered less vulnerable to judicial challenge.
The flurry of tariff activity underscores Trump’s aggressive trade posture. It reflects both his emphasis on protecting American workers and his broader strategy of leveraging trade measures to enforce human rights standards abroad.
The distinction between countries facing ten per cent and twelve and a half per cent tariffs highlights the administration’s attempt to differentiate between those making commitments and those failing to act.
ANI
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