The Trump administration is slapping 10% and 12.5% tariffs on 60 countries for failing to address forced labour in their supply chains, marking the latest salvo in its tariff offensive as it seeks to restore trade barriers struck down by the Supreme Court in February.
The Trump administration announced substantial new tariffs on Tuesday, 3 June 2026, targeting 60 trading partners deemed inadequate in combating forced labour in their supply chains. The move escalates trade tensions as the administration rebuilds its tariff framework following February’s Supreme Court ruling that invalidated earlier levies under emergency powers.
Tiered tariff structure
The tariffs will be imposed at two rates: 10% on 15 countries including Canada, Mexico, the European Union, Bangladesh, and Cambodia, while 12.5% duties apply to the remaining 45 nations. US Trade Representative Jamieson Greer framed the action as necessary to prevent American workers from competing in an unfair global marketplace where forced labour goods undercut legitimate competition.
Timeline and concessions
The proposal comes before a 7 July deadline for public comment and a 7 July hearing. These measures will take effect after a temporary 10% tariff—imposed on 20 February—expires on 24 July. The administration has carved out exemptions for critical commodities including energy, rare earth metals, beef, coffee, select produce, pharmaceuticals, and aircraft components.
The USTR also signalled plans for a textile tariff mechanism allowing reduced duties on certain apparel imports, though specific rates remain undisclosed. This targeted approach reflects broader efforts to reshape trade policy, with the agency separately proposing 25% duties on Brazilian goods related to digital trade practices and preparing findings on industrial overcapacity among 16 major partners.
