Full Breakdown
Trump Administration Imposes New Forced-Labour Tariffs on 60 Trading Partners
7/24/2026, 5:46:30 AM
Core Action and Scope
On July 24, the United States will apply import duties of 10 % or 12.5 % to goods from roughly 60 countries, covering about 99 % of U.S. imports. Partners that have enacted or pledged forced-labour bans face a 10 % rate; others face 12.5 %. Exemptions include oil, gas, fertiliser, and products covered by the USMCA. The tariffs replace a temporary 10 % levy that expired the same day.
Background and Legal Context
President Donald Trump introduced a global tariff regime in early 2025, citing forced-labour concerns. The Supreme Court later ruled that the International Emergency Economic Powers Act did not authorize those duties, forcing refunds to importers. The administration then used Section 122 of the Trade Act of 1974 for a five-month, 10 % tariff that expired on July 24. The current measures are imposed under Section 301 of the Trade Act of 1974, which allows action against “unjustifiable, unreasonable or discriminatory” trade practices.
Data and Scope of the Tariff Regime
- Countries affected: 60, including the EU, China, India, Japan, South Korea, Brazil, Chile, Australia, New Zealand and Canada.
- Tariff rates: 10 % for 16 partners (e.g., Canada, the United Kingdom, Argentina, Bangladesh) and 12.5 % for the remaining 44 (e.g., China, Japan, South Korea, Vietnam).
- Coverage: Top 60 U.S. trade partners, representing 99.4 % of U.S. imports.
- Forced-labour context: The ILO estimates 27.6 million people were in forced labour worldwide on any given day in 2021.
Official Statements & Responses
U.S. Representative Linda Sánchez called the tariffs a “sham,” arguing they bypass the Supreme Court’s decision. New Zealand Trade Minister Todd McClay said the investigation was “not rigorous.” Brazil’s government labeled the tariffs “arbitrary and unjustified” and warned of retaliation.
Verbatim Quotes
- “President Trump recognizes that decades of moral suasion have not eradicated forced labor from global supply chains.” — Trade Representative Jamieson Greer
- “President Trump isn’t serious about combating forced labor. He’s trying to make an end-run around the Supreme Court and Congress to reimpose his illegal tariffs,” — Linda Sánchez
- “These tariffs are unjustified, inconsistent with our free-trade agreement and should be removed,” — Don Farrell
Conflicting Reports & Gaps
Sources differ on the exact composition of the 10 % tariff list. Euronews lists Canada, the EU, India and the United Kingdom among the 10 % partners, while CBC specifies Canada plus 15 other partners, including Argentina, Bangladesh and Pakistan. Both agree the remaining 44 nations face a 12.5 % rate, but detailed product breakdowns are lacking.
What’s Next
The tariffs become effective at 12:01 a.m. U.S. Eastern Time on July 24 (2 p.m. AEST). The U.S. Trade Representative said the administration will monitor compliance and may adjust rates if additional partners adopt forced-labour bans. Congressional oversight and legal challenges are expected.
