Global Economy — 2026-07-24

Trump Imposes Forced Labor Tariffs of Up to 12.5 Percent on 60 Countries Under Section 301

BLUFBy pivoting to a hearing-backed Section 301 process, the administration has rebuilt a near-universal tariff floor on legally defensible ground just as the court-invalidated levies expire.

Ambassador Jamieson Greer, acting at President Trump's direction, imposed final Section 301 tariffs on 60 economies Thursday for failing to enforce prohibitions on forced-labor imports, following investigations opened in March and public hearings held in April and July 1. USTR set duties at 10 percent for economies including Argentina, Bangladesh, Canada, India, Mexico, Pakistan, and the United Kingdom, which have adopted or committed to forced-labor import bans, and 12.5 percent for all other investigated economies, with the European Union, Taiwan, Japan, South Korea, and Switzerland facing 10 or 12.5 percent net of existing MFN rates on certain products 1. The Hill reported the tariffs cover 99.4 percent of US imports and hit Washington's largest trading partners 2. France 24 reported the new duties replace temporary levies set to expire Friday after the Supreme Court struck down Trump's earlier trade measures 3. USTR stated exemptions apply to raw materials without adequate domestic supply and to select products from economies working toward forced-labor import bans 1.

Analysis
Section 301's hearing-driven record gives these tariffs firmer statutory footing than the emergency measures the Supreme Court struck down, restoring a near-universal import floor the moment those levies lapse. The tiered structure operates as a compliance ladder, holding 10 percent for economies that adopt or commit to forced-labor import bans and 12.5 percent for holdouts, an incentive Ottawa, London, and other 10-percent partners can leverage against remaining trading partners, while carve-outs for raw materials and mid-negotiation economies let USTR reward incremental compliance without reopening the investigations. Sourcing rests on USTR's own release, with CBS, The Hill, and France 24 adding amplification rather than independent verification. The forced-labor rationale may also serve as durable legal cover for restoring tariff revenue lost when the earlier IEEPA-based measures were vacated.

4 sources

USTR Takes Action in Forced Labor Section 301 Investigations - Office of the United States Trade Representative
Trump administration announces new tariffs on 60 countries over forced labor - The Hill
Trump announces double digit tariffs on 60 countries over forced labour concerns - France 24
Trump administration imposes new tariffs on dozens of countries citing forced labor concerns - CBS News