U.S. Imposes Forced-Labor Tariffs on 60 Partners
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- The United States announced tariffs on 60 trading partners over forced labor concerns, effective July 24, 2026, with rates ranging from 10% to 12.5% and covering major economies including China, India and the European Union
- U.S. Trade Representative Jamieson Greer said the duties hit economies with forced labor prohibitions (Canada, EU, UK) at 10%, while China and Japan face the higher 12.5% rate
- The new duties replace a temporary 10% tariff expiring July 24 that Trump tapped after the Supreme Court struck down his earlier tariff moves in February 2026
- Section 301 of the Trade Act of 1974 was used to impose the tariffs after a months-long investigation, a legal authority former USTR general counsel Greta Peisch said is "much more likely" to withstand court challenges and persist through Trump's term
- Goods already subject to sector-specific tariffs like steel and aluminum, plus items entering under the U.S.-Mexico-Canada free trade pact, are exempt from the new duties
- The announcement follows a 25% tariff on Brazilian goods and Trump's order this week for 50% tariffs on many Canadian products, effective in a month — moves Atlantic Council's Josh Lipsky said signal U.S. tariff deals "are still fragile"
Why it matters: The duties are calibrated to survive court scrutiny — tying rates to whether partners have forced labor prohibitions (10% vs. 12.5%) creates a compliance lever where countries can lower tariffs by passing labor reforms. With Washington also separately investigating 16 economies over excess industrial capacity and wielding a 50% Canada tariff via an untested legal provision, the toolkit is widening well beyond the February Supreme Court setback.
