President Donald Trump has imposed new tariffs of 10% or 12.5% on imports from 60 U.S. trading partners, with the duties taking effect on July 24.
The move comes only days after he imposed 50% tariffs on selected Canadian goods during a dispute that also included his complaints about wildfire smoke from Canada, although the formal tariff orders cited discrimination involving vehicles, alcohol and dairy rather than the smoke.
The new duties replace a temporary 10% global import surcharge that expired at 12:01 a.m. Eastern time on July 24, according to Reuters. The latest action targets countries and economies that the Trump administration says have failed to block goods made with forced labor from entering their own markets.
The Temporary 10% Global Tariff Has Expired
Trump imposed the temporary 10% surcharge in February under Section 122 of the Trade Act of 1974. That law allows a president to introduce a broad import charge for up to 150 days in response to serious international payment problems.
The temporary import surcharge began on February 24. It expired early on July 24 because the administration could not extend it past the legal limit without action from Congress.
The new tariffs began at the same time. They were imposed under Section 301, which allows the United States to respond to foreign government policies or practices that burden American commerce.
Using Section 301 gives the administration a different legal basis. U.S. trade officials spent several months investigating the countries before announcing the final rates.
Why the Administration Targeted 60 Trading Partners?
The Office of the U.S. Trade Representative opened 60 separate investigations in March. Officials examined how each economy deals with imports that may have been produced wholly or partly through forced labor.
USTR said 54 economies had failed to impose and enforce a proper ban on forced labor imports. Six others had adopted a ban but were not enforcing it effectively. The six were Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan.
The investigation included government consultations, public hearings and more than 2,100 comments. The affected economies account for 99.4% of all goods imported into the United States, according to the administration.
The findings do not mean that every product arriving from the listed countries was made with forced labor. The tariffs are a response to the import rules and enforcement systems used by each trading partner.
The U.S. trade representative said the tariffs are intended to pressure governments to adopt controls similar to the American ban on goods made with forced labor.
All 60 Trading Partners and Their New Tariff Rates
Most countries face an additional tariff of either 10% or 12.5%. Five economies have a different calculation based on the ordinary most favored nation tariff already charged on each product.
The European Union is counted as one economy in the official list. Its inclusion means the action covers goods from all EU member states.
| Trading partner | Section 301 tariff treatment |
|---|---|
| Algeria | Additional 12.5% |
| Angola | Additional 12.5% |
| Argentina | Additional 10% |
| Australia | Additional 12.5% |
| Bahamas | Additional 12.5% |
| Bahrain | Additional 12.5% |
| Bangladesh | Additional 10% |
| Brazil | Additional 12.5% |
| Cambodia | Additional 10% |
| Canada | Additional 10% |
| Chile | Additional 12.5% |
| China | Additional 12.5% |
| Colombia | Additional 12.5% |
| Costa Rica | Additional 12.5% |
| Dominican Republic | Additional 12.5% |
| Ecuador | Additional 10% |
| Egypt | Additional 12.5% |
| El Salvador | Additional 10% |
| European Union | 10% total including the existing MFN tariff |
| Guatemala | Additional 10% |
| Guyana | Additional 12.5% |
| Honduras | Additional 10% |
| Hong Kong | Additional 12.5% |
| India | Additional 10% |
| Indonesia | Additional 10% |
| Iraq | Additional 12.5% |
| Israel | Additional 12.5% |
| Japan | 12.5% total including the existing MFN tariff |
| Jordan | Additional 10% |
| Kazakhstan | Additional 12.5% |
| Kuwait | Additional 12.5% |
| Libya | Additional 12.5% |
| Malaysia | Additional 10% |
| Mexico | Additional 10% |
| Morocco | Additional 12.5% |
| New Zealand | Additional 12.5% |
| Nicaragua | Additional 12.5% |
| Nigeria | Additional 12.5% |
| Norway | Additional 12.5% |
| Oman | Additional 12.5% |
| Pakistan | Additional 10% |
| Peru | Additional 12.5% |
| Philippines | Additional 12.5% |
| Qatar | Additional 12.5% |
| Russia | Additional 12.5% |
| Saudi Arabia | Additional 12.5% |
| Singapore | Additional 12.5% |
| South Africa | Additional 12.5% |
| South Korea | 12.5% total including the existing MFN tariff |
| Sri Lanka | Additional 10% |
| Switzerland | 12.5% total including the existing MFN tariff |
| Taiwan | 10% total including the existing MFN tariff |
| Thailand | Additional 12.5% |
| Trinidad and Tobago | Additional 10% |
| Türkiye | Additional 12.5% |
| United Arab Emirates | Additional 12.5% |
| United Kingdom | Additional 10% |
| Uruguay | Additional 12.5% |
| Venezuela | Additional 12.5% |
| Vietnam | Additional 12.5% |
Five Economies Have a Different Tariff Calculation
The European Union and Taiwan do not automatically receive another full 10% charge on every covered product. Their ordinary tariff and the new Section 301 tariff are combined to reach 10%.
A product from the European Union with an existing tariff of 4% would receive another 6% charge. A product already facing a tariff of 10% or more would receive no extra Section 301 duty under this calculation.
The same method applies to Japan, South Korea and Switzerland, but their target rate is 12.5%. A Japanese product with an existing 5% tariff would receive another 7.5%. A product already charged 12.5% or more would receive no added tariff from this action.
Most other countries face the listed tariff on top of the ordinary customs rate. Other trade remedies may also apply, depending on the product and its country of origin.
Several Types of Goods Are Excluded
The tariffs apply to most imports from the listed trading partners, but they do not cover every shipment.
Informational materials, charitable donations and baggage carried by travelers are excluded. Goods already covered by national security tariffs under Section 232 are also outside the new action.
Section 232 duties currently apply to several major product groups, including steel, aluminum, copper, vehicles, vehicle parts and some other industrial goods. Those products may still face their existing tariffs, but they will not receive another duty under the forced labor action.
USTR also excluded selected raw materials and products that could be difficult to replace with American supplies. Other exemptions cover goods that could cause serious disruption across the economy or cannot be produced in sufficient quantities inside the United States.
The exact exclusions depend on customs classification codes. Importers will need to examine the full federal tariff notice rather than relying only on a general product description.
Goods that were already loaded and in transit before 12:01 a.m. Eastern time on July 24 may avoid the new charge if they enter the United States before 12:01 a.m. on July 28.
American Importers Pay the Tariff
A tariff is collected from the American company importing the product. The foreign government does not send the tariff payment to the U.S. Treasury.
An importer can absorb the cost, negotiate a lower price with its supplier or raise the price charged to American businesses and shoppers. The final effect will differ by product.
A 12.5% import tariff does not guarantee a 12.5% increase at a store. Shipping costs, existing contracts, profit margins and competition from other suppliers also affect the final price.
The new duties still create fresh cost pressure at a time when households remain sensitive to price changes. Our latest review of inflation across the United States found that overall prices fell in June, but many goods and services still cost more than they did one year earlier.
Companies that depend on imports from several affected countries may need to review their supply chains quickly. China, India, Japan, South Korea, the European Union, Mexico and Canada are all included.
Canada Now Faces Two Separate Tariff Actions
Canada receives the lower 10% rate because it already has a forced labor import ban. USTR concluded that Canadian enforcement was not strong enough.
The new 10% duty is separate from the 50% tariffs announced on July 20. The earlier action covers selected Canadian wine, hockey sticks, cement and other goods. It is scheduled to begin on August 19.
Trump had also complained about Canadian wildfire smoke crossing into the United States. His administration said the July 20 tariffs were not legally based on the smoke dispute. The official reasons involved Canadian treatment of American vehicles, alcoholic drinks and dairy products.
The new forced labor tariff has another legal basis. It applies more widely across Canadian imports, subject to the product exemptions in the USTR notice.
The Tariffs Could Change Again
Several countries received the lower rate after adopting import bans or making new trade commitments during the investigation. Cambodia, Guatemala, Honduras, India, Sri Lanka and Trinidad and Tobago introduced forced labor controls after the proposed tariffs were published in June.
USTR can review the action if more governments change their laws or enforcement systems. Product exemptions may also be revised after the administration sees how the tariffs affect American companies and supply chains.
Foreign governments could challenge the duties through negotiations, American courts or international trade channels. Some may also prepare tariffs against U.S. exports.
For American businesses, the immediate task is more practical. Importers must identify the country of origin, customs code, existing tariff and any exemption that applies to each shipment. The temporary global tariff was simple in comparison. The new system creates different rates and calculations across the largest U.S. trading relationships.
