Trump Imposes Section 301 Tariffs on 60 Economies Over Forced Labor

The United States Trade Representative (USTR) implemented new tariffs ranging from 10% to 12.5% on imports from 60 economies starting July 24, 2026. Directed by President Donald Trump, the action follows a Section 301 investigation into countries that allegedly failed to prohibit the import of goods produced with forced labor. The measures effectively replace a previous 10% global duty and reciprocal tariffs that were struck down by the U.S. Supreme Court in February 2026.

Tariff rates are tiered based on a nation's commitment to labor prohibitions. Seventeen countries, including India, Canada, and Mexico, face a 10% rate, while others, such as China, Brazil, and Singapore, are subject to 12.5%. To mitigate economic disruption, the USTR granted exemptions for semiconductors, pharmaceuticals, and aerospace products. Additionally, the U.S. established tariff-rate quotas for Bangladesh, Cambodia, Indonesia, and Malaysia to encourage the use of U.S. cotton and textiles.

International reactions have been largely hostile. Brazil and Australia denounced the measures as arbitrary, and China characterized the move as an unreasonable trade war. India reported that its engagement with the USTR helped secure a lower tariff tier, though the Confederation of Indian Textile Industry warned that the lack of quotas for India could divert sourcing orders to competitors. Domestically, small businesses represented by the Liberty Justice Center filed lawsuits in the U.S. Court of International Trade, arguing that the administration is using forced labor as a pretext to establish a permanent import tax regime without required country-specific findings.