Washington moved quickly to rebuild its tariff regime after a Supreme Court setback, unveiling new duties of 10% and 12.5% on imports from 60 trading partners just as a temporary global tariff expired early Friday.
The new levies, covering about 99.4% of U.S. imports, target major trading partners including the European Union and China. The administration said the measures were necessary because those economies had failed to do enough to keep goods made with forced labor out of their supply chains, an allegation the affected governments deny.
The move marks the administration’s first major step toward restoring the broad tariff system after the Supreme Court struck down President Donald Trump’s “reciprocal” tariffs, which ranged from 10% to 50% and were introduced last year under emergency powers to reduce the U.S. trade deficit. Unlike those duties, the latest tariffs were imposed under Section 301 of the Trade Act of 1974, which officials believe offers a stronger legal foundation because it has survived previous court challenges.
U.S. Trade Representative Jamieson Greer said the decision was driven by human rights concerns rather than an effort to replace the invalidated tariffs.
“The United States has had a forced labor import ban for nearly a century, and rigorously enforces it. It’s well past time for our trading partners to do the same,” Greer said. He added that the new tariffs would help address “both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere.”
The investigation that led to the tariffs began months ago, when the Office of the U.S. Trade Representative launched reviews into whether the 60 economies had effective bans on imports made with forced labor. U.S. officials also held consultations with more than 45 of the governments before reaching their conclusions.
Trump’s temporary 150-day global tariff, a flat 10% surcharge, expired at 12:01 a.m. EDT on Friday, and the new Section 301 duties took effect immediately. Goods already in transit received a grace period and won’t face the new tariffs until 12:01 a.m. EDT on July 28.
The tariffs divide trading partners into two groups. A 10% duty applies to Argentina, Bangladesh, Britain, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka and Trinidad and Tobago. U.S. officials said those countries have forced-labor import bans, or plans to introduce them, but are not enforcing them effectively.
The European Union, Taiwan, Japan, South Korea and Switzerland were assigned rates that, when combined with existing most-favored-nation tariffs, total either 10% or 12.5%. The remaining 38 countries, including Vietnam and China, face the higher 12.5% rate. Vietnam recently tightened its rules on forced-labor imports, while Washington continues to accuse China of using forced labor involving Uyghur minorities. Beijing rejects those claims.
Reactions varied.
The European Commission struck a cautious tone, saying the outcome aligned with previous U.S.-EU commitments.
“The EU notes positively the fact that this outcome is in line with the U.S. tariff commitments agreed under the EU-U.S. Joint Statement,” a Commission spokesperson said, adding that it could provide “positive momentum” toward additional exemptions.
French Trade Minister Nicolas Forissier questioned the legal basis for the tariffs but said they at least gave businesses greater certainty. Switzerland also disputed Washington’s findings on forced labor while noting the U.S. had respected an agreed 12.5% tariff ceiling.
Britain, which was excluded from a separate Section 301 investigation into industrial overcapacity, welcomed the decision.
“Our agreement with the U.S. remains in place, and today we see an improvement to our trading terms with zero tariffs on whisky and medical technology,” a British government spokesperson said.
The British Chambers of Commerce described the outcome as mixed, saying tariff relief for whisky and favorable steel treatment were partly offset by a smaller competitive advantage over European rivals in other sectors.
Other governments were more critical. China said it opposed unilateral tariffs, arguing trade wars benefit no one. Australia and Brazil called the duties unjustified and said they would seek their removal, while Norway said it saw “no basis” for the measures.
Canada, which is already dealing with fresh Trump tariffs on $20 billion worth of goods imposed earlier this week, responded cautiously.
“We will continue engaging constructively with the United States on this matter, as well as other outstanding issues, over the coming weeks to the mutual benefit of our citizens,” said Dominic LeBlanc, Canada’s minister responsible for U.S. trade relations.
Washington also said the new tariffs would not exceed limits already agreed under bilateral trade deals, a commitment the European Union welcomed. Officials confirmed that a separate Section 301 investigation into industrial overcapacity remains underway, targeting 16 economies including the EU, China, India, Japan, South Korea and Switzerland. That probe could result in additional tariffs.
Kelly Ann Shaw, a former White House trade adviser during Trump’s first term who is now with law firm Akin Gump Strauss Hauer & Feld, said the rollout was largely expected, although the administration expanded its exclusion list by about 471 products.
“I think this is more status quo in terms of the economic impact,” she said.
The exemptions cover oil and gas, fertilizer, selected food products, aircraft and aircraft parts, critical minerals, and goods already subject to separate national security tariffs on autos, steel, aluminum and copper under Section 232.
Belgium’s diamond industry emerged as one of the biggest beneficiaries. The Antwerp World Diamond Centre welcomed the renewed exemption for polished diamonds, which accounted for $2.1 billion in exports to the United States in 2024 before the exemption ended after the Supreme Court’s February ruling.
The Committee for a Responsible Federal Budget estimates the new tariff regime could generate roughly $900 billion in federal revenue through 2036 if it remains in place.
Bond markets treated the announcement as a potential inflation risk, nudging Treasury yields slightly higher. Broader financial markets, however, showed little reaction as investors remained focused on the conflict in the Middle East.
By: Andrews Kwesi Yeboah