Full Breakdown
Trump Administration Imposes New Forced-Labor Tariffs on 60 Trading Partners
7/27/2026, 12:14:37 PM
New Forced-Labor Tariffs Target 60 Trading Partners
On July 24, the United States enacted a new round of import duties on goods from 60 foreign economies, covering roughly 99 % of U.S. imports. The measures replace a temporary 10 % global tariff that expired at 12:01 a.m. ET that day.
Legal and Policy Background
The administration’s earlier “Liberation Day” tariffs, imposed under the International Emergency Economic Powers Act, were struck down by the Supreme Court on February 20 for exceeding presidential authority. The White House then used Section 122 of the Trade Act of 1974 to impose a 10 % worldwide levy for 150 days. The current duties are authorized under Section 301 of the 1974 Trade Act, which addresses “unfair or discriminatory” trade practices.
Scope and Rates (Data & Statistics)
- 12.5 % tariff applies to 43 economies, including China, Vietnam, Brazil and Russia, which the administration says have not enforced forced-labor bans.
- The tariffs affect 99.4 % of U.S. imports and exempt oil, gas, fertilizer, many food items and products already covered by sector-specific duties (e.g., steel, aluminum).
Official Government Rationale
The administration argues the tariffs pressure countries to enforce bans on goods produced with forced labor and protect U.S. workers from unfair competition.
Business and Economic Reactions
Small-business owners warn the duties will raise costs for imported inputs, likely leading to higher consumer prices.
International Criticism
Several allies have rejected the forced-labor justification. Kaja Kallas, the EU’s foreign-policy chief, said the United States’ claim “is not really grounded” given Europe’s labor-rights standards.
Legal Challenges and Uncertainties
Two small businesses—Burlap & Barrel and Collective Horology—have filed a lawsuit in federal court. Legal scholars note that while Section 301 has survived past challenges, the breadth of the current investigation may invite further judicial scrutiny.
Verbatim Quotes
- “The significance this time around is twofold,” — Emma Moriarty, portfolio manager at CG Asset Management
- “If there are tariffs imposed and if they stick, that is certainly going to drive up the prices of imports, which is going to add to inflation,” — Eswar Prasad, Cornell University
- “Today’s forced labour justification is too convenient to be taken seriously,” — Richard Neal, top Democrat on the House Ways and Means Committee
- “This is the third time the administration has attempted to impose its global tariff policy without following the statutory limits,” — Jeffrey Schwab, director of litigation at the Liberty Justice Center
- “In the absence of a domestic legal basis to sustain its protectionist trade policy, the USTR opted to manipulate an issue of great importance to human rights and to the struggle of workers around the world in order to accuse 59 countries and the European Union of unfair practices,” — Brazilian government (statement)
