Trump Imposes Forced Labor Tariffs on 60 Trading Partners

President Donald Trump implemented a new wave of import tariffs ranging from 10% to 12.5% on 60 trading partners, effective July 24, 2026. The administration justifies these levies under Section 301 of the Trade Act of 1974, claiming the targeted nations—including China, Japan, and Australia—failed to adequately enforce bans on goods produced with forced labor. These duties serve as a legal replacement for temporary 10% global tariffs that expired at the same time, following a February Supreme Court ruling that invalidated the president's previous use of the International Emergency Economic Powers Act.

Beyond the forced-labor duties, Trump signed proclamations imposing 50% tariffs on specific Canadian goods, such as dairy and alcohol, effective August 19, and 25% tariffs on most Brazilian products. The administration cited discriminatory trade practices in Canada and unfair trade conduct in Brazil as catalysts. In response, Brazil announced a $3.65 billion credit line to support affected companies and plans to appeal to the World Trade Organization.

Global reactions have been sharply critical. Leaders from the European Union, Australia, and New Zealand condemned the measures as unjustified, with many arguing that forced labor is a pretext for a broader power grab. Domestically, the Liberty Justice Center filed a lawsuit in the U.S. Court of International Trade on behalf of small businesses, alleging the administration exceeded its statutory authority. Trump defended the policy at the White House, claiming the tariffs drive domestic investment and correct human rights abuses.