GTRI Flags Lacks Of Credible Evidence In US 10% Tariff On Indian Goods

New Delhi, Jul 24 (KNN) The Global Trade Research Initiative (GTRI) has raised concerns over the United States’ decision to impose a 10 per cent tariff on Indian exports under a Section 301 investigation into forced labour, stating that the measure lacks a clear factual basis.

In its report, GTRI said, “The 10 per cent US tariff on Indian exports under the forced-labour investigation lacks a credible factual basis,” adding that the US has not presented evidence to support claims that India imports goods produced using forced labour, ANI reported. 

The think tank noted that India had already amended its Foreign Trade Policy in June 2026 to prohibit imports linked to forced or compulsory labour. This policy change contributed to a reduction in the proposed tariff from 12.5 per cent to 10 per cent.

Broad Impact Across Export Sectors

Despite the revision, the report highlighted that nearly 70 per cent of India’s exports to the US will now face both the standard Most Favoured Nation (MFN) tariff and the additional 10 per cent duty. 

These exports include engineering goods, textiles and garments, chemicals, machinery, plastics, leather products, gems and jewellery, furniture and other manufactured items.

Another 8 per cent of exports—covering sectors such as steel, aluminium, copper products and auto components—will continue to attract existing tariffs of 25–50 per cent under separate provisions, along with MFN duties.

Concerns Over Trade Intent

GTRI argued that the tariff may be aimed at maintaining existing trade barriers rather than addressing a specific forced labour issue. It suggested the move could be linked to preserving tariff protections following the expiry of temporary measures under Section 122.

“The tariff therefore appears to serve primarily as a mechanism to preserve the Trump administration's tariff wall after the expiry of the temporary Section 122 tariffs, rather than as a targeted response to a proven forced-labour problem involving India,” the report noted.

Exclusion from Preferential Access

The report also pointed out that India has not been included in the textile and apparel tariff-rate quota (TRQ) exemptions granted to countries such as Bangladesh, Cambodia, Indonesia and Malaysia for certain exports using US-origin inputs.

(KNN Bureau)