Overview
- The tariffs took effect on July 24, 2026, replacing a temporary 10% global levy and applying a 10% duty to 17 economies and 12.5% to 43 others under Section 301 of the Trade Act of 1974.
- India was moved into the 10% tier after New Delhi amended its Foreign Trade Policy on July 14 to ban imports produced with forced labour, but most Indian exports will still face the additional duty unless specifically exempted.
- The measures include broad product carve-outs for critical raw materials, oil and gas, fertiliser, food items and goods covered by other trade pacts to avoid U.S. supply shocks and domestic shortages.
- Critics and independent analysts say the U.S. has not publicly provided direct evidence linking some covered countries to imports made with forced labour and predict legal challenges and diplomatic protests will follow.
- The administration’s shift to Section 301 is a legal retooling designed to create a durable tariff floor after the Supreme Court struck down emergency tariffs and could prompt further probes and trade friction that reshape supply chains and bilateral talks.