India, July 24 -- The United States has announced a new 10% tariff on imports from India, saying the move is aimed at countries that have failed to adequately prohibit or enforce restrictions on goods made using forced labour. The tariff, announced by the Office of the US Trade Representative (USTR), is part of a broader action covering 60 economies and will replace the temporary 10% global tariff imposed earlier this year.

While India managed to secure a lower tariff than the originally proposed 12.5%, the move adds another layer of uncertainty to ongoing India-US trade negotiations. It also raises concerns for exporters, especially as India remains the subject of a separate Section 301 investigation into excess manufacturing capacity....