Trump slaps 10-12.5% tariffs on 60 nations over forced labor, replacing expiring global levies

Background

The Trump administration has imposed a new round of tariffs on imports from 60 countries, just hours before the expiration of temporary 10 percent worldwide levies. The previous tariffs, introduced on February 24 under Section 122 of the Trade Act of 1974, were a stopgap after the Supreme Court struck down broader tariffs imposed under the International Emergency Economic Powers Act in February. The court ruled that IEEPA did not authorize such tariffs, forcing the administration to issue refunds to importers. The temporary 10 percent duty had a maximum lifespan of 150 days and was set to expire at midnight.

New tariff details

The new tariffs, set at 10 or 12.5 percent, take effect at midnight US Eastern Time on Friday (06:01 Central European Time). They cover 99.4 percent of all US imports, according to the US Trade Representative's office. The European Union faces a joint 10 percent tariff, while Switzerland is generally subject to the higher 12.5 percent rate, though exceptions apply for certain products. Other affected economies include Japan, Taiwan, India, South Korea, Canada, the United Kingdom, Mexico, Guatemala, Honduras, El Salvador, Costa Rica, Panama, and the Dominican Republic. For some partners, the rate varies by product. China, which already faces higher specific tariffs, is not on the new list. Exemptions include steel, aluminum, oil, gas, and goods already loaded onto ships. The US Trade Representative, Jamieson Greer, said the action addresses both a human rights abuse and a distortive trade practice.

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.

Legal basis and investigation

The tariffs are imposed under Section 301 of the Trade Act of 1974, which permits action against "unjustifiable, unreasonable, or discriminatory" trade practices. The US Trade Representative's office launched an investigation in March, receiving more than 1,600 written comments and hearing testimony from over 100 witnesses. The probe concluded that 60 trading partners have inadequately enforced bans on goods produced by forced labor. Unlike the temporary Section 122 tariffs, Section 301 tariffs have survived court challenges in the past, including those imposed on China during Trump's first term. The administration argues that the new legal basis is more durable.

Reactions and criticism

The Center for American Progress, a Washington think tank, described the Trump administration's tariff policy as "unprecedented and chaotic," arguing it has caused severe damage to the US economy. Ryan Mulholland, a senior fellow at the center, said the tariffs "led neither to new trade agreements nor to better market access for American exporters." Switzerland has rejected the forced labor accusations, and Swiss Federal Councillor Guy Parmelin reaffirmed a bilateral memorandum of understanding during a visit to Washington in late June. US correspondent Barbara Colpi noted that lawsuits against the new tariffs are expected, potentially bringing the issue back to the Supreme Court.

They led neither to new trade agreements nor to better market access for American exporters.

What comes next

The US Trade Representative's office is also conducting a separate investigation into whether 16 countries, accounting for 70 percent of US imports, have overproduced goods, depressing prices and disadvantaging US companies. That probe could result in additional tariffs. The administration has not yet completed that investigation.