America imposed new tariff on 60 countries including China, know what will be the impact on India?

Donald Trump, who is in power as the President of America, has given a big blow to 60 countries of the world including India. US has also imposed 10% tariff on goods related to ‘forced labour’ on India under Section 301 investigation. With this 10 percent tariff, India has now joined the ranks of Pakistan, Sri Lanka and Bangladesh as well as several Latin American and Asian economies.

America made this announcement on Thursday (July 23, 2026). Under this, 10 percent tariff has been imposed on imports from 60 other countries including India. According to experts, this step has been taken after several months of investigation into the practices of forced labour. It is a different matter that India has got a lower rate than the initially proposed 12.5% ​​tariff under Section 301 of the Trade Act 1974.

What tariff was imposed?

With this 10 percent tariff, India has joined the ranks of Pakistan, Sri Lanka and Bangladesh as well as many Latin American and Asian economies. Overall, the US has imposed tariffs on 60 countries, which account for more than 99 percent of total US imports. It is being told that this action was taken against these countries including India, Sri Lanka and Pakistan because they have failed to effectively implement the sanctions and stop the import of goods made with forced labour.

Announcing the tariffs, US Trade Representative Jameson Greer said this action is the first step towards improving a situation that violates human rights and creates unfair trade practices to protect the well-being of workers everywhere.

India will also be affected

India is facing two separate investigations under ‘Section 301’, while rival countries like Pakistan and Sri Lanka face only a forced labor investigation. If those countries impose lower overall tariff rates, India may lose its competitive advantage in terms of exports to the US market.

Tariff imposed after investigation

This action follows two Section 301 investigations initiated by the Trump administration in March. This provision allows the US to take retaliatory trade measures against countries that are found to be engaging in unfair or discriminatory practices. Unlike the Section 122 tariffs that came into effect in February, Section 301 tariffs have no rate caps or expiration dates, but they do require formal vetting before they can be implemented.

There were preparations to impose tariff up to 13 percent

India is also facing a separate Section 301 investigation into alleged excess manufacturing capacity, which is still ongoing. Earlier, the office of the US Trade Representative had indicated that 12.5 percent tariff could be imposed on India as part of the forced labor investigation. This would have placed India on the list of countries that Washington believed had not done enough to stop the import of goods made with forced labour. During the public consultation process, Indian industry bodies and government officials defended India’s record and cited constitutional provisions prohibiting forced labour.

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