The United States has taken a significant step in its trade policy by imposing new tariffs on 60 of its trading partners. This move, effective from July 25, 2026, aims to address the issue of forced labor in global supply chains. The tariffs, ranging from 10% to 12.5%, replace the temporary 10% tariff that expired at midnight ET on July 24, 2026.
The new duties are enacted under Section 301 of the Trade Act of 1974 a different statute from previous tariff authorizations. This action follows months of investigations into the trading practices of these economies, with a focus on their failure to enforce bans on imports produced with forced labor.
Key Trading Partners and Tariff Rates
Among the trading partners facing a 10% tariff are Canada, Mexico, India, and the United Kingdom. The U.K. tariff mirrors a deal reached last year between former President Donald Trump and then-Prime Minister Keir Starmer to lower tariffs on U.K. imports to the U.S. to 10%. The European Union the largest single U.S. trading partner, and Taiwan will face up to a 12.5% tariff rate. This new rate appears to lower the 15% cap agreed upon last year between Trump and European Commission President Ursula von der Leyen.
The Administration’s Justification and Investigations
The U.S. Trade Representative’s Office has conducted extensive investigations into the trading practices of these economies. The administration asserts that these 60 economies have failed to enforce a prohibition on the importation of goods produced with forced labor. U.S. Trade Representative Jamieson Greer stated, “The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same.”
The probe into these trading partners has been ongoing since mid-March, as the administration considered which tariff statute to turn to next. The new duties include a wide range of exemptions, such as fertilizers, certain types of fuel, foods, autos, metals, and pharmaceuticals. Additionally, all generic drugs being brought into the United States will continue to have a tariff of zero percent for a two-year period.
Reactions from Trading Partners
The European Union has strongly rejected the accusation of failing to enforce labor laws. E.U. foreign policy chief Kaja Kallas told the Reuters news agency, “You can’t say that for the European Union. If you compare our labor laws to the ones of the United States, we have paid vacations, we have very good labor conditions for our employees, so it’s not really grounded.”
Some analysts note that the new tariffs may make little difference to current levies. However, the administration maintains that these measures are necessary to combat forced labor and ensure fair trade practices.
The U.S. Customs and Border Protection (CBP) plays a crucial role in enforcing America’s forced labor import prohibition. In June 2026, CBP issued new Withhold Release Orders against copper and copper products manufactured in Serbia and apparel products manufactured in Jordan. CBP personnel at all U.S. ports of entry will detain shipments of these copper products due to evidence indicating the use of forced labor in their production.
This action underscores the Trump administration’s commitment to eliminating forced labor from global supply chains and setting high standards for protecting workers both at home and abroad.
