Trump imposes 10–12.5% tariffs on 60 trading partners, citing forced labour, as temporary levy expires

The new tariff regime

The United States will impose tariffs of 10% to 12.5% on imports from about 60 trading partners, effective 00:01 Washington time on Friday 24 July 2026. The measures replace a temporary 10% global tariff that had been in place since February, when the Supreme Court struck down earlier, broader duties. The new levies cover roughly 99% of all US imports, according to trade data cited by Greek media. The legal foundation is Section 301 of the Trade Act of 1974, the same tool used against China during Trump’s first term.

Legal pivot after Supreme Court defeat

After the Supreme Court invalidated the so-called Liberation Day tariffs, the administration imposed a 150-day stopgap 10% tariff under the International Emergency Economic Powers Act. That measure expires at the same moment the new tariffs take effect, ensuring no gap in protection. The USTR launched a Section 301 investigation in mid-March, examining whether trading partners adequately prevent goods made with forced labour from entering US supply chains. The findings, released last month, concluded that most partners fall short.

The United States has maintained a ban on imports of forced-labour products for nearly a century and enforces it strictly. It is time our trading partners did the same.

Two-tier rate structure

Countries that have some legislation against forced labour, including the EU, the United Kingdom, Canada, Mexico and India, face a 10% tariff. India was originally slated for 12.5% but was moved to the lower tier in the final decision. About 40 other economies, among them China, Japan, Switzerland and South Korea, will be hit with 12.5%. Energy, raw materials, food and fertilisers are exempt, as are products already subject to separate sectoral duties, such as automobiles, metals and pharmaceuticals. Additional carve-outs cover cork, diamonds, aircraft parts and generic drugs.

Brussels sees a glass half-full

The European Commission struck a notably restrained tone. Spokesperson Olof Gill said the EU “notes positively” that the outcome respects the Turnberry agreement’s 15% ceiling, even though Brussels rejects the forced-labour justification. The EU points to its own forthcoming legislation, which will fully ban forced-labour goods by 2027. For now, predictability for business trumps a new transatlantic fight.

The European Union notes positively that this result is consistent with the US commitments agreed in the EU-US joint statement.

Pushback from Tokyo and Wellington

Japan’s government was less diplomatic. Spokesperson Minoru Kihara said Tokyo “regrets” the measure, insisting that Japanese industry and trade comply with international rules. New Zealand Prime Minister Christopher Luxon went further, calling the tariffs “extremely disappointing” and asserting that the USTR investigation “produced no substantive evidence” to support the forced-labour claims. Both countries are in the 12.5% bracket.

The USTR investigation produced no substantive evidence to support the claims.

What comes next

The USTR is already conducting a separate investigation into 16 countries that account for 70% of US imports, examining whether overproduction is artificially compressing prices and harming American businesses. That probe could yield additional duties. For now, the new Section 301 tariffs lock in a protectionist framework that the administration argues will revive domestic industry, while critics warn of higher costs for consumers across the 60 affected economies.