U.S. President Donald Trump is poised to impose new tariffs of 10% to 12.5% on roughly 60 countries as the temporary 10% global levy expires on July 24, 2026. To bypass the Supreme Court's February 2026 ruling rejecting his emergency tariff powers, the administration is utilizing a Section 301 investigation into forced labor. Advisers warn these measures could trigger economic shocks ahead of the midterm elections, where polls show Democrats leading by nine points amid rising energy costs and 3.3% inflation.
New tariffs on sixty countries
- ▪The proposed tariffs on dozens of countries are scheduled to replace a temporary 10% global tariff regime that is set to expire on Friday, July 24, 2026.
- ▪U.S. President Donald Trump plans to impose fresh tariffs ranging from 10% to 12.5% on approximately 60 countries as early as the week of July 21, 2026.
Supreme Court Liberation Day rejection
- ▪The Supreme Court of the United States struck down Donald Trump's sweeping 'Liberation Day' reciprocal tariffs in February 2026.
- ▪The Supreme Court of the United States ruled in February 2026 that Donald Trump could not rely on the International Emergency Economic Powers Act to impose sweeping reciprocal tariffs.
Midterm election polling concerns
- ▪More than half of surveyed voters rate Donald Trump's handling of the economy as bad and believe economic conditions are worsening.
- ▪A Daily Mail/JL Partners poll from July 2026 shows Democrats holding a nine-point lead on the midterm ballot, 50 percent to 41 percent.
Forced labor tariff justification
- ▪Using a forced labor investigation allows Donald Trump to sidestep the emergency powers that were rejected by the Supreme Court.
- ▪The proposed tariffs on roughly 60 countries would be justified by a Section 301 investigation into forced labor practices first floated by trade officials in June 2026.
Manufacturing capacity investigations
- ▪U.S. officials are conducting an excess manufacturing capacity investigation involving the European Union, China, Japan, India, South Korea, Mexico, Taiwan, Vietnam, and others.
- ▪The excess manufacturing capacity investigation also covers Switzerland, Norway, Singapore, Thailand, Malaysia, Indonesia, Cambodia, and Bangladesh.
Iran tensions energy prices
- ▪Tensions with Iran have driven Brent crude oil prices above $90 per barrel and gasoline prices above $4 per gallon during the week of July 21, 2026.
- ▪Annual inflation in the United States is running near 3.3 percent according to the Cleveland Fed's nowcast during the week of July 21, 2026.
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