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macroJul 23, 2026, 9:12 PM

US Unveils Tariff Rates Based on Forced Labor Prohibition: 10% vs 12.5%

A US official announced new tariff measures largely following a June proposal, imposing a 10% rate on countries with forced labor bans and 12.5% on those without. Some nations, including India, have seen their rates reduced from 12.5% to 10%.

A US official has stated that new trade measures closely mirror the June proposal. Countries that have implemented a forced labor prohibition will face a tariff rate of 10%, while those that have not will face 12.5%.

Some countries, including India, have managed to bring their previously proposed 12.5% rate down to 10%. This represents a shift in tariff treatment based on compliance with labor standards.

The announcement signals a continuation of the administration's trade policy tied to labor practices, though detailed implementation timelines remain unclear.

Source: First Squawk