Trump Administration Imposes New Tariffs on 60 Countries Over Forced Labor Enforcement Claims

The Trump administration announced new tariffs of 10% to 12.5% on 60 trading partners over alleged failures to enforce bans on imports made with forced labor. The duties will take effect at 12:01 a.m. Eastern Time on July 24, 2026, when temporary 10% global tariffs expire, although a senior administration official disputed describing them as a direct replacement. Seventeen partners will face a 10% rate, 38 will face 12.5%, and five others—including the European Union—will face additional levies bringing their total most-favored-nation tariff rate to either 10% or 12.5%. The measures use Section 301 of the Trade Act after the Supreme Court struck down Trump's emergency tariffs in February.

Forced labor tariffs

• ▪Exemptions from the forced labor tariffs include oil, gas, fertilizers, some metals, pharmaceuticals, and goods complying with the U.S.-Mexico-Canada Agreement.
• ▪The tariffs cover 60 trading partners: 17 will face a 10% rate, 38 will face a 12.5% rate, and five others—including the European Union—will face additional levies bringing their total most-favored-nation tariff rate to either 10% or 12.5%.
• ▪The new forced labor tariffs will take effect at 12:01 a.m. Eastern Time on July 24, 2026, at the same moment the temporary 10% global tariffs expire; a senior administration official disputed characterizing them as a direct replacement.
• ▪The Trump administration announced new tariffs of 10% to 12.5% on 60 trading partners over alleged failures to enforce forced labor import bans.

Supreme Court invalidated emergency tariffs

• ▪Following the Supreme Court ruling, President Donald Trump imposed temporary 10% global tariffs under Section 122 of the Trade Act of 1974 for a 150-day period.
• ▪The U.S. Supreme Court in February 2026 struck down President Donald Trump's emergency tariffs that had been imposed under the International Emergency Economic Powers Act.

Trade Act investigation procedures

• ▪U.S. Trade Representative Jamieson Greer's office conducted a months-long investigation into the forced labor enforcement practices of trading partners starting in mid-March 2026.
• ▪The new forced labor tariffs are enacted under Section 301 of the Trade Act of 1974, which allows duties to counter unfair trade practices.

Tariff revenue projections

• ▪The Office of the U.S. Trade Representative stated that it could not provide an estimate of how much revenue the new tariffs will generate.
• ▪The Committee for a Responsible Federal Budget projected that the forced labor tariffs could generate nearly $1 trillion in revenue over the next decade.

Refund processing status

• ▪Litigation continues in the Court of International Trade for companies seeking the remaining portion of the $166 billion in invalidated emergency tariff refunds.
• ▪U.S. Customs and Border Protection has processed approximately $85 billion in tariff refunds through May 2026 out of $166 billion owed to companies.

International disputes over accusations

• ▪The European Commission rejected the forced labor accusations as unjustified, citing its commitment to a U.S. trade deal capping tariff rates at 15%.
• ▪Vietnam's foreign ministry stated that the country strictly prohibits forced labor and has worked constructively with the United States to resolve disagreements.