The United States is implementing new tariffs ranging from 10% to 12.5% on approximately 60 of its trading partners, targeting nations that the administration claims have failed to adequately restrict imports produced with forced labor. The new duties, which take effect on Friday, will impact key global economic partners including the United Kingdom, China, the European Union, Canada, Japan, and India. This rollout coincides with the expiration of a temporary 10% tax on foreign goods that was introduced earlier this year.
The move represents a shift in strategy for the White House after the US Supreme Court ruled earlier this year that many of the global tariffs previously imposed under emergency powers were enacted illegally. Following that decision in February, which struck down the emergency duties and forced the refund of tens of billions of dollars to importing companies, the president has sought alternative legal pathways to advance his administration's trade agenda.
On Thursday, US Trade Representative Jamieson Greer announced the implementation of the new duties under the direction of the president. Greer invoked Section 301 of the Trade Act of 1974, a statute designed to address foreign trade practices that burden or restrict American commerce. In a statement, Greer declared, "Today's action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere." This legal mechanism differs from the administration's action earlier in the week, when it used Section 338 of the Tariff Act of 1930 to levy 50% tariffs on goods from Canada.
According to the trade representative's office, the newly announced duties will cover 99.4% of all US imports, affecting the country's top 60 trading partners. The administration has structured the tariffs to incentivize compliance; trading partners that have made formal commitments to adopt and effectively enforce bans on forced labor imports will face a lower 10% tariff. Meanwhile, countries that have not made such commitments will be hit with the higher 12.5% rate. Greer noted he was "encouraged by the trading partners who have moved quickly to adopt forced labour import prohibitions, and look forward to ensuring their effective enforcement."
The White House has emphasized that establishing bans on forced labor is a critical component of its reciprocal trade agreements during the president's second term. Officials reported that 10 trading partners have already agreed to implement these import bans, while other countries have introduced prohibitions in recent weeks following US investigations.
The president has consistently maintained that tariffs are essential for protecting American workers, reviving domestic manufacturing, and strengthening the overall economy. Upon returning to office last year, he initially imposed tariffs of up to 50% on global partners during an event he termed "Liberation Day," arguing the measures were necessary to counter decades of unfair trade practices. However, the Supreme Court's February ruling found that the president had exceeded his authority by bypassing Congress.
In the interim, the administration utilized a temporary 10% sweeping levy as a stopgap measure, which is now expiring. The US has also pursued separate trade measures, including tariffs on countries like Brazil and Canada, while a long-running trade dispute with China remains on hold.
Economists have cautioned that these sweeping import taxes often translate to higher costs for everyday consumer goods, such as microwaves and coffee. Because importing companies are responsible for paying the duties, these businesses frequently pass the financial burden onto shoppers. In response to the new measures, several trading partners are already considering retaliatory tariffs or legal challenges. Furthermore, the administration is preparing for potential future trade actions, with the US Trade Representative currently investigating 16 countries over allegations of manufacturing overcapacity, which could result in additional tariffs later this year.
Trump has long argued that tariffs protect American workers, create more manufacturing jobs and boost the US economy.
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