This has reference to the Forced Labor Section 301 Investigations initiated by the USA on 60 economies including India.

Office of the United States Trade Representative (USTR) vide docket number Docket Nos. USTR-2026-0265, USTR-2026-0266 dated 24th July has announced additional tariffs under Section 301 of the Trade Act of 1974. The tariff rates applicable to India and some of its major competitors are as follows:

Country Additional Section 301 Tariff
India 10%
Bangladesh 10%
Cambodia 10%
UK 10%
China 12.5%
Vietnam 12.5%

The country wise detailed list of tariffs is given in the attached docket. Click here

Further, the USTR has announced that Tariff Rate Quotas (TRQs) will be established for Bangladesh, Cambodia, Indonesia and Malaysia for an initial period of three years. The objective of the TRQs is to encourage imports by these economies of U.S. textile goods and cotton by allowing specified quantities of textiles and apparel to enter the United States without being subject to the additional Section 301 tariffs. Until the TRQ mechanism is established and becomes operational, imports from these four economies will continue to attract the additional 10% Section 301 tariff.

It may be noted that the above tariff rates are over and above the existing MFN tariffs and will be applicable to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on July 24, 2026, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern time on July 24, 2026, and entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. eastern time on July 28, 2026.

Members may take note of the above and plan their exports accordingly.

Best regards,

Chandrima Chatterjee

Secretary General

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