The United States government has imposed new tariffs on imports from 60 trading partners, citing allegedly insufficient measures against forced labor. The new duties, which took effect Friday, July 24, 2026, at 6:01 a.m. Central European Summer Time (midnight U.S. Eastern Time), impact a significant portion of U.S. trade. According to the office of U.S. Trade Representative DIE ZEIT, the levies are set at either 10 percent or 12.5 percent depending on the nation’s perceived commitment to addressing forced labor.
New Tariffs Take Effect
For the European Union, Canada, India, and Great Britain, the U.S. has applied the 10 percent rate. Conversely, nations such as China, Japan, and South Korea face the higher 12.5 percent tariff. These measures were implemented as the previous 150-day global tariffs, which had been enacted in February following a Supreme Court ruling, reached their expiration date.
Legal Basis and Justification
The administration of President Donald Trump is utilizing Section 301 of the Trade Act of 1974 to justify the new import duties. This statute allows the president to impose sanctions against countries accused of unjustified, unreasonable, or discriminatory trade practices. Officials stated that the 60 affected economies, which account for 99 percent of U.S. imports, have failed to adequately enforce bans on goods produced through forced labor.
The United States has had a ban on goods from forced labor for nearly a century and enforces it consistently. It is high time that our trading partners do the same, Greer stated. The administration previously faced a setback when the Supreme Court ruled that its earlier, emergency-based tariffs were an overreach of presidential authority, requiring the government to refund billions in collected duties. By shifting the legal justification to Section 301, the administration seeks to establish a more sustainable foundation for its trade policy.
Exemptions and Limitations
Not all imports are subject to the new duties. Exceptions have been granted for products already in transit on the final leg of transport that are processed before July 28. Additionally, the U.S. government announced exemptions for crude oil, natural gas, fertilizers, and goods covered under the United States-Mexico-Canada Agreement (USMCA).
Despite these measures, the government maintains existing sector-specific tariffs on products such as steel and aluminum. For the European Union, the new 10 percent rate serves as a general baseline, though specific goods—such as cheese—may already face higher effective duties.
International Response
The announcement has drawn widespread criticism from global partners. The Canadian government, through Prime Minister Mark Carney, indicated that all options are on the table, including potential retaliatory measures if a resolution is not reached. Brazil labeled the tariffs as arbitrary and unjustified and stated its intent to challenge the move at the World Trade Organization (WTO).
Australian Trade Minister Don Farrell described the tariffs as completely unjustified and noted that they conflict with existing free trade agreements. Similarly, New Zealand’s Prime Minister Christopher Luxon expressed that the announcement was extremely disappointing. Meanwhile, the Japanese government expressed “regret,” emphasizing that its industrial and trade sectors operate in accordance with international rules. In the United States, Democratic Representative Richard Neal criticized the policy, characterizing the forced labor justification as a pretext for a trade strategy built on questionable legal foundations.
Discover more from Archyworldys
Subscribe to get the latest posts sent to your email.