US imposes 10-12.5% tariffs on 60 nations over forced labor, replacing struck-down global levy

New tariff structure

The United States has imposed new tariffs of 10% and 12.5% on imports from 60 trading partners, effective at midnight Eastern Time on July 24, 2026 (6:00 a.m. in Poland). The move replaces a temporary 10% global tariff that President Donald Trump introduced in February after the Supreme Court struck down his earlier round of levies. The 10% rate applies to countries that have adopted laws banning imports of forced-labor goods but, in Washington's view, do not enforce them sufficiently. The 12.5% rate hits nations that lack such bans altogether. The European Union, Canada, the United Kingdom, India, and Mexico fall into the 10% group. Australia, Brazil, China, and Japan are among those facing the higher 12.5% tariff, though Japan and South Korea have indicated that existing bilateral trade deals may shield them from the new charges.

Legal foundation and permanence

The tariffs were announced on July 23 by the Office of the United States Trade Representative (USTR) under Section 301 of the Trade Act of 1974, which allows the president to penalize unfair trade practices. USTR Jamieson Greer stated that the investigations concerned "the failure to adopt and effectively enforce a ban on imports of goods produced with forced labor."

The United States has had a ban on imports of forced labor goods for nearly a century and rigorously enforces it; it is high time our trading partners do the same.

The Wall Street Journal noted that the new tariffs can remain in place indefinitely and can be unilaterally adjusted by the president. Senior White House officials told reporters that the president will not let his trade policy be weakened because one tool may be limited by a court. The administration is also conducting further investigations that could provide a basis for even higher tariffs.

Global reactions

Reaction from trading partners was swift and largely negative. European Union foreign policy chief Kaja Kallas said the bloc would seek explanations in Washington, adding that the EU had fulfilled its commitments under last year's transatlantic trade deal and viewed the tariffs as a shock. Australia and Brazil called the measures unjustified and vowed to push for their removal. Norway's foreign minister said there was no basis for the new duties.

The investigation did not provide substantial evidence to support the claims regarding forced labor.

New Zealand Prime Minister Christopher Luxon described the move as "extremely disappointing." Australia's Deputy Prime Minister Richard Marles told ABC radio that the decision "makes no sense" and stressed his country's support for free markets. Canada, one of America's largest trading partners, insisted it should not be a target, noting its leadership in combating forced-labor imports.

Exemptions and exceptions

The new tariff regime excludes several major product categories. Steel, aluminum, automobiles and auto parts, certain food and agricultural goods, and oil and gas are not covered by the 10% or 12.5% rates. For some economies, such as Japan, South Korea, Taiwan, and Switzerland, the applicable rate depends on the product category. Japanese officials said they had received confirmation from Washington that last year's bilateral tariff agreement remains unchanged and that no additional tariffs would ultimately be imposed on Japan. South Korea similarly reported that the US had committed to honoring its existing trade deal, effectively nullifying the new rate for Seoul.

What comes next

The tariffs are designed as a permanent replacement for the temporary 10% levy that expired at the same moment. The USTR's announcement emphasized that the rates can be modified unilaterally by the president at any time. With further Section 301 investigations underway, the administration retains the option to raise tariffs on additional goods or countries. For now, the immediate focus is on diplomatic channels: the EU is seeking clarifications, while Australia and Brazil are preparing to challenge the measures. The new architecture marks a significant escalation in the use of trade law to enforce labor standards abroad, with no built-in expiration date.