The United States has imposed a new 10% tariff on imports from India under Section 301 of the Trade Act of 1974, citing concerns over the enforcement of laws against goods produced using forced labor. The tariff is part of a broader trade action targeting multiple economies. While India was initially expected to face a 12.5% tariff, the rate was reduced after New Delhi amended its foreign trade policy to prohibit imports made using forced labor. The US Department of Labor highlighted concerns across several Indian sectors, including textiles, garments, tea, shrimp processing, leather goods, carpets, fireworks, rice mills, and stone quarries. Industry experts warn that the permanent nature of the Section 301 tariffs could affect Indian exports, investments, and ongoing India-US trade negotiations.

US Imposes 10% Tariff on India | Trump Targets Forced Labor, Trade Talks Face New Challenge

Donald Trump 50 per cent tariff imposition on India was a result of his personal pique at not being allowed to mediate in the India-Pakistan conflict, American multinational investment bank and financial services company Jefferies said in a recent report.

America's 50% tariff on India was due to Trump's 'personal' enmity? This report reveals hidden info

Secretary of State Marco Rubio justified why the US has imposed additional tariffs on India over Russian oil purchases, but no sanctions have been imposed on China, the largest buyer of oil from Moscow, citing disruptions in global markets if the move is taken.

Is US being hypocritical? How Rubio justified 50% tariff threats on India, while China avoids penalty

When asked whether after India, Trump is considering imposing tariffs on China over its Russian oil purchase, Vance said that the US president is considering it.

After India, Trump considering imposing tariffs on China over Russian oil purchase? Here’s what JD Vance revealed

Amid the rapidly escalating situation of the US imposing repeated tariffs on Indian goods(initial 25% and an additional 25%), Tamil Nadu Industries Minister TRB Rajaa expressed hope that the Indian government would discuss the matter with manufacturing and export powerhouse states.

Hope Modi govt consults states on US tariffs: Tamil Nadu Industries Minister

Amid the chaos around the US tariff imposed on India, China has expressed its support for its neighbouring country, saying that Indian sovereignty is non-negotiable and its foreign policy choices cannot be manipulated by other countries.

‘India's sovereignty is non-negotiable’: China backs India amid US tariff chaos

US President Donald Trump, in an interview with CNBC on Tuesday (August 5), said that he will raise the tariff imposed on India in the next 24 hours. 

'Settled on 25%, but...': Trump threatens to raise tariff on India in next '24 hours,' repeats 'Russian oil' rant

The US tariff affects several key Indian export sectors, including textiles, gems and jewellery, and auto components. However, products like pharma, IT services, and high-end engineering goods remain relatively insulated, with the Centre taking steps to mitigate the impact on the industries.

India’s strategic shift: Diversifying exports amid US tariff pressure

Despite the US' pressure, India continues to source oil from Russian suppliers. As per the report, among other things, this is because Moscow is the world's second-largest crude oil producer and also the second-largest exporter.

India defies Trump’s oil penalties, continues Russian imports: Report

Trump, when asked if he planned to speak with PM Narendra Modi and if he had a penalty figure in mind, said, "I understand that India is no longer going to be buying oil from Russia. That's what I heard; I don't know if that's right or not. That is a good step. We will see what happens..."

Trump calls reports of India halting Russian oil purchase 'good step' calls PM Modi a 'good friend'

These rates are typically triggered when imports exceed quota limits or originate from countries without trade preference agreements, a situation that affects many developing-country exporters.

US calls India ‘Tariff King’ even as its own agricultural tariffs cross 300%

Every 1st of the month, several changes are made and implemented with major rules. This time, along with the US tariff, several financial rules are set to come into force that will impact the pocket of the common man.

From UPI to LPG: 8 major rules to change from August 1—Know which will hit your pocket the most?

The US is India’s largest trading partner, and the $131 billion trade relationship is now under serious threat, as India will struggle to maintain its position as a major exporter to the US without making significant adjustments.

The US tariff hit on India: What’s happening and what’s at stake?