Final US Section 301 Measures on Forced Labour: India Placed in Lower Tariff Tier at 10%

📌 Summary:

• The US Trade Representative (USTR) announced final measures under Section 301 of the US Trade Act, 1974 (23 July 2026), following an investigation into 60 economies (including India) over the imposition and enforcement of bans on goods produced with forced labour
• India placed in the lower tariff tier: an additional 10% ad valorem duty — a reduction from the 12.5% initially proposed on 2 June 2026 — giving Indian exports a relative advantage
• The reduction is credited to India's sustained engagement with USTR through detailed written submissions, in-person consultations and participation in public hearings
• ~45% of India's exports to the US remain outside the additional 10% duty: zero-duty items (generic pharmaceuticals, smartphones, specified products) plus goods already covered under Section 232 (steel, aluminium, auto parts); the remaining ~55% attract the 10%, but at a tariff incidence lower than most other investigated economies
• A textile-specific mechanism is referenced in the final measures

🎯 UPSC Relevance: GS2/GS3 — India-US trade relations, unilateral trade measures and protectionism, impact on export competitiveness.

📝 Prelims Facts:

• Section 301 = US Trade Act, 1974; Section 232 covers steel/aluminium/auto parts
• India's additional duty finalised at 10% (down from proposed 12.5%)
• ~45% of India's US-bound exports remain exempt

🔑 Key Term: Section 301 — a provision of the US Trade Act 1974 enabling the USTR to investigate and retaliate against foreign trade practices deemed unfair or discriminatory.