The Trump administration imposed tariffs of 10% to 12.5% on 60 countries on 24 July 2026 under Section 301 of the Trade Act of 1974, alleging they failed to enforce forced labour prohibitions in their supply chains, as a temporary 10% global duty expired.
The Trump administration imposed new tariffs across 60 trading partners—the EU, China, Japan, Canada, and dozens more—alleging they’ve failed to prevent goods made by forced labour from entering their supply chains on 24 July 2026.
The move marks the first major tariff action after the US Supreme Court dismantled his previous reciprocal duty scheme in February 2026. The new duties, issued under Section 301 of the Trade Act of 1974, take effect immediately as a temporary 10% global tariff expires.
According to a Federal Register notice, the new tariffs apply to 99.4% of US imports, with exemptions for products such as oil and gas, fertiliser, and certain food items.
Countries face either a flat 10% or 12.5% rate—or combined rates reaching those thresholds where existing tariffs already apply.
Why Section 301 matters
The legal manoeuvre sidesteps the Supreme Court’s rejection of Trump’s national emergency powers. Section 301 has survived prior court challenges, giving the administration a more durable foundation. Trump officials signalled this was a deliberate strategy to rebuild the tariff wall while respecting previous trade commitments—particularly with the EU, which had negotiated tariff caps.
Who pays what
Eighteen countries including Bangladesh, Cambodia, Mexico, and the UK face a straight 10% rate for allegedly having forced labour bans but failing to enforce them. The EU, Taiwan, Japan, South Korea, and Switzerland hit either 10% or 12.5% when combined with existing rates.
Another 38 countries—Vietnam, China, India, Brazil, Australia, and others—absorb 12.5%. China’s rate is rising from the current 10% toward a planned 20%, the level agreed in November 2025 with President Xi Jinping but never reached.
Reactions: mixed, sceptical, muted
The EU acknowledged that tariff caps held firm—a small win. Britain highlighted preserved whisky exemptions and better steel treatment than competitors. But Australia, Brazil, and Norway rejected the forced labour justification outright. Canada barely responded, already reeling from Monday’s additional tariffs on USD 20 billion in goods. China called the move unilateral and pointless.
A separate Section 301 investigation into excess capacity remains pending, targeting the same 16 partners including the EU, China, and Japan. Bond markets barely stirred. The real test comes when those duties land.
Full list of countries
10% tariffs:
- Argentina
- Bangladesh
- Cambodia
- Canada
- Ecuador
- El Salvador
- Guatemala
- Indonesia
- Malaysia
- Mexico
- Pakistan
- United Kingdom
10-12.5% tariffs:
- European Union
- Taiwan
- Japan
- Korea
- Switzerland
12.5% tariffs:
- Algeria
- Angola
- Australia
- Bahamas
- Bahrain
- Brazil
- Chile
- China
- Colombia
- Costa Rica
- Dominican Republic
- Egypt
- Guyana
- Honduras
- Hong Kong
- India
- Iraq
- Israel
- Jordan
- Kazakhstan
- Kuwait
- Libya
- Morocco
- New Zealand
- Nicaragua
- Nigeria
- Norway
- Oman
- Peru
- Philippines
- Qatar
- Russia
- Saudi Arabia
- Singapore
- South Africa
- South Korea
- Sri Lanka
- Thailand
- Trinidad and Tobago
- Turkey
- United Arab Emirates (UAE)
- Uruguay
- Venezuela
- Vietnam
