Trump Imposes 10-12.5% Tariffs on 60 Economies Citing Forced Labor

President Donald Trump imposed new double-digit tariffs on imports from 60 trading partners on July 24, 2026, under Section 301 of the Trade Act of 1974, citing inadequate enforcement of forced-labor import bans. The levies replace a temporary 10% global tariff under Section 122 that expired at 12:01 a.m. Friday, after the Supreme Court struck down earlier emergency-powers tariffs in February Source: AP News.

Tariff Tiers and Exemptions

The tariffs range from 10% to 12.5% and cover 99% of U.S. imports. Countries that have adopted forced-labor import prohibitions—including Canada, India, and the UK—face the lower 10% rate. Others, such as China, Japan, and South Korea, face 12.5% Source: DW News. Mexico and Canada, however, are largely exempt for goods compliant with the USMCA, with Mexico noting that "approximately 80% of products Mexico exports to the U.S." remain tariff-free Source: Mexico News Daily. Exemptions also apply to oil, gas, fertilizer, and goods already covered by Section 232 tariffs on steel and automobiles Source: Fox Business.

Reactions and Legal Challenges

The tariffs drew sharp criticism from trading partners. Australia called them "unjustified" Source: CNBC, while Brazil labeled them "arbitrary and unjustified" and planned retaliatory tariffs Source: Euronews. China urged Washington to avoid a trade war, stating "Tariff wars and trade wars are not in the interests of any party" Source: Channel News Asia. Meanwhile, two lawsuits have been filed by small businesses—including Learning Resources and Burlap and Barrel—challenging the legality of the tariffs, arguing the administration did not adequately justify the action against each country . The U.S. Trade Representative Jamieson Greer defended the move, saying "The United States has had a forced labor import ban for nearly a century, and rigorously enforces it" .