Trump Drops Section 301 Tariff Bomb on 17 Nations: India and Pakistan Hit with 10% Import Duty
Washington — In a major international trade action, US President Donald Trump has officially enacted new import duties ranging between 10% and 12.5% across 60 global trading partners. Imposed under Section 301 of the Trade Act of 1974 by the Office of the United States Trade Representative (USTR), the fresh duties specifically target economies deemed to have insufficient legal enforcement against goods manufactured with forced labor. Taking effect at 12:01 a.m. EDT on Friday, July 24, 2026, the regulatory measures replace a temporary global tariff framework that expired at the same moment.
Why India and Pakistan Received the 10% Lower Tariff Slab
Under the finalized Section 301 determination, 17 key economies—including India, Pakistan, Bangladesh, Sri Lanka, Canada, Mexico, the United Kingdom, Argentina, Cambodia, Ecuador, El Salvador, Guatemala, Honduras, Indonesia, Jordan, Malaysia, and Trinidad and Tobago—have been placed in the lower 10% tariff category. US Trade Representative Jamieson Greer confirmed that President Trump directed the 10% levy for nations that have actively instituted import prohibitions against forced labor goods or pledged reciprocal commitments to eliminate workplace exploitation from international supply chains.
How Bilateral Diplomacy Saved India from the Higher 12.5% Penalty
Initial regulatory draft proposals had earmarked India for a harsher 12.5% tariff penalty under the forced labor probe. However, following intensive bilateral negotiations and swift policy updates by New Delhi—including foreign trade amendments by the Directorate General of Foreign Trade (DGFT) prohibiting forced labor imports—Washington agreed to reduce India's duty classification. A senior US official noted that constructive government-to-government discussions and proactive domestic measures played a decisive role in securing India's lower 10% rate.
Broader Economic Scope and Critical Product Exemptions
While 17 nations secured the 10% tier, countries lacking adequate safeguards face the full 12.5% tariff rate. Select industrial shipments from the European Union, Japan, South Korea, Taiwan, and Switzerland will also attract duties between 10% and 12.5%. To prevent severe supply disruptions, the USTR has exempted critical commodities, including crude oil, natural gas, fertilizers, essential foodstuffs, and items already subject to Section 232 duties such as steel, aluminum, copper, and motor vehicles.
