Trump administration imposes new tariffs on 60 nations over forced labor

The Trump administration announced on Thursday, 23 July 2026, the implementation of new tariffs reaching up to 12.5% on goods from 60 trading partners. Effective Friday, 24 July 2026, the move seeks to address international forced labor practices, which officials claim provide an unfair competitive advantage over American manufacturers who face domestic prohibitions on such labor.

This action marks a shift in the administration's broader trade strategy. The new levies replace a expiring 10% global tariff that was initially enacted under Section 122 of the Trade Act — a measure designed to address balance-of-payment issues that carries a legal expiration limit of 150 days. The new duties are instead authorized under Section 301, a provision that allows for more durable trade enforcement following formal government investigations.

According to US Trade Representative Jamieson Greer, the policy aims to compel global counterparts to adopt stricter enforcement standards.

"The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same."

Jamieson Greer, US Trade Representative, via Straitstimes

Tiered Tariff Structure

The administration has applied the tariffs in tiers based on the existing legislative landscapes of the impacted nations:

• 12.5% Rate: Applies to the majority of the 60 affected nations, including China, Japan, South Korea, and Vietnam.
• 10% Rate: Applies to 17 countries that maintain some form of existing forced labor prohibition, including the United Kingdom, Canada, and Mexico.

Certain trading partners, including the European Union, Taiwan, and Switzerland, have been granted specific relief to align these new duties with prior trade agreements. Furthermore, officials confirmed that several categories of goods remain exempt from the levies. These include oil, gas, and fertilizers — items largely not produced domestically, alongside commodities already subject to specific duties, such as steel and aluminum. Goods compliant with the US-Mexico-Canada Agreement are also largely shielded from the new measures.

Legal Strategy and Trade Context

The transition to Section 301 follows a February ruling by the Supreme Court, which invalidated the administration's initial attempt to impose country-by-country tariffs under emergency economic powers. By conducting months-long investigations into forced labor, the administration claims its current approach is more resilient to legal challenges.

The timing of this policy shift coincides with a flurry of other trade actions. The administration recently triggered 25 percent tariffs on Brazilian goods, citing discriminatory treatment. These actions, alongside ongoing probes into "excess capacity" in manufacturing involving 16 additional economies, suggest a persistent effort to utilize trade levers to reshape international supply chains.

Trade experts suggest the administration is building a layered enforcement framework. While the new tariffs provide immediate leverage, the reliance on Section 301 grants officials the flexibility to modify rates as new developments arise.

What to Watch Next

• Upcoming Investigations: Washington continues to evaluate excess industrial capacity across 16 economies, which may lead to further, varying tariff rates.
• International Compliance: The European Union has indicated an expectation that the United States will honor previous commitments made under the EU-US Joint Statement, potentially setting the stage for diplomatic tension regarding the new levies.
• Legal Endurance: Observers note that by using lengthy investigation processes to ground these tariffs, the administration is attempting to ensure the measures remain in place for the remainder of the current presidential term.

Despite the administration's claims, the policy continues to draw criticism from economists who warn that widespread tariffs often result in increased prices for domestic consumers and may stifle economic growth. The administration, however, maintains that the dual approach of negotiation and tariff enforcement is essential to its trade agenda, regardless of domestic or international pressure.