Trump Administration Imposes New Tariffs Over Forced Labor Claims

Just hours before temporary 10% worldwide tariffs were set to expire at 12:01 a.m. Friday, July 24, the Trump administration announced new double-digit levies on 60 countries that account for more than 99% of all U.S. imports.

The new tariffs are being imposed under Section 301 of the Trade Act of 1974, which grants the president authority to investigate and retaliate against “unjustifiable,” “unreasonable,” or “discriminatory” foreign trade practices. The first wave of Section 301 investigations was completed last week. In announcing the new tariffs, U.S. Trade Representative Jamieson Greer said the investigations determined the affected trade partners were inadequately enforcing bans on goods produced with forced labor.

“President Trump recognizes that decades of moral suasion have not eradicated forced labor from global supply chains,” Greer said. “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.”

The administration launched a series of Section 301 investigations in March after the U.S. Supreme Court ruled the president’s use of the 1977 International Emergency Economic Powers Act to impose sweeping global tariffs was unconstitutional. Following that ruling, the Trump administration announced 10% worldwide tariffs under Section 122 of the Trade Act of 1974; however, those tariffs have a limited lifespan of only 150 days unless extended by Congress. That deadline arrived last week, with them being replaced by the Section 301 tariffs, which don’t expire for four years and can be renewed.

More Section 301 tariffs will likely be announced in the coming months. In addition to the forced labor investigation, the U.S. Trade Representative is reviewing whether 16 countries have overproduced goods in a way that pushed down prices and put U.S. companies at a trade disadvantage.

Not all imports from the 60 countries are affected. The U.S. Trade Representative carved out exemptions for some items, including oil, gas, and items that could lead to domestic supply chain issues. Products covered by the U.S.-Mexico-Canada Agreement are also exempt.

The full list of countries affected by the Section 301 tariffs is as follows:

10% rate

• Argentina
• Bangladesh
• Cambodia
• Canada
• Ecuador
• El Salvador
• Guatemala
• Indonesia
• Malaysia
• Mexico
• Pakistan
• United Kingdom

10% or 12.5%, net for Most-Favored-Nation rate

• European Union
• Taiwan
• Japan
• South Korea
• Switzerland

12.5% rate

• Algeria
• Angola
• Australia
• Bahamas
• Bahrain
• Brazil
• Chile
• China
• Colombia
• Costa Rica
• Dominican Republic
• Egypt
• Guyana
• Honduras
• Hong Kong
• India
• Iraq
• Israel
• Jordan
• Kazakhstan
• Kuwait
• Libya
• Morocco
• New Zealand
• Nicaragua
• Nigeria
• Norway
• Oman
• Peru
• Philippines
• Qatar
• Russia
• Saudi Arabia
• Singapore
• South Africa
• Sri Lanka
• Thailand
• Trinidad and Tobago
• Türkiye
• United Arab Emirates
• Uruguay
• Venezuela
• Vietnam