Full Breakdown
Trump Administration Rolls Out New Forced-Labor Tariffs on 60 Countries
7/26/2026, 12:50:21 PM
Core Event: Section 301 Duties Begin
At 12:01 a.m. ET on Friday, the United States implemented new import duties on 60 trading partners. The tariffs, ranging from 10 percent to 12.5 percent, are imposed under Section 301 of the Trade Act of 1974 and replace a temporary 10 percent global levy that expired the previous night. The measures cover 99.4 percent of U.S. imports, with exemptions for certain fertilizers, fuels, foods, autos, metals and pharmaceuticals.
Background & Context
President Donald Trump’s trade agenda has relied on sweeping tariffs since his return to office. Earlier “Liberation Day” tariffs—10 to 50 percent duties imposed under the International Emergency Economic Powers Act—were struck down by the Supreme Court in February 2026. The administration then used a 150-day temporary tariff regime, which also expired on the Friday before the new duties took effect. To preserve the policy, officials shifted to Section 301, a statute traditionally used to counter unfair trade practices.
Data & Statistics
- 60 economies are subject to the new duties, including the United Kingdom, Canada, Mexico, India, China, the European Union, Japan, South Korea and Taiwan.
- Tariff rates are 10 percent for partners deemed to have adopted forced-labor bans and 12.5 percent for those that have not.
- The 150-day temporary tariffs generated $31 billion in assessed revenue through July 5.
- Refunds issued after the Supreme Court ruling totalled roughly $81 billion for the current fiscal year, with $35.5 billion processed by May 11.
Official Statements & Responses
A Treasury official confirmed that the large refund outlays stem from the court-ordered reversal of the earlier IEEPA tariffs and emphasized that the refunds go to importers, not directly to consumers.
Criticism & Opposition
European Union foreign-policy chief Kaja Kallas rejected the allegation that the bloc tolerates forced labor, citing EU labor protections. Japan’s spokesperson called the duties “regrettable” and asserted that Japan’s economy operates “in line with international rules.” Canadian chamber of commerce executive Matthew Holmes argued that a coordinated multilateral approach would be more effective than unilateral tariffs.
Verbatim Quotes
- “We're at the end of the beginning of the Trump tariff agenda,” — Dan Ujczo, associate general counsel at Canadian oil producer Cenovus Energy
- “The tariff wall is being rebuilt strong brick by strong brick, and it's very durable,” — Josh Lipsky, chair of international economics at the Atlantic Council
- “The specific authorities this administration is using have changed, but the trade strategy has not,” — Trade Representative Jamieson Greer, ambassador
What’s Next
The administration has announced a separate Section 301 probe into “excess industrial capacity” targeting 16 major partners, including China, the EU, Japan, South Korea, Mexico and Vietnam. No specific timeline has been provided, but officials indicate that additional tariff actions could follow once the investigation concludes.
