Trump Imposes Forced Labor Tariffs on 60 Economies

The United States Trade Representative (USTR) implemented Section 301 tariffs on 60 economies effective July 24, 2026, citing their failure to effectively prohibit and enforce bans on goods produced with forced labor. Under the direction of Donald Trump, the USTR applied tiered duties: 10% for nations deemed to be on the right path, such as Canada, Mexico, India, and the European Union, and 12.5% for others, including China, Brazil, Saudi Arabia, and Singapore. The action serves as a legal alternative to achieve global tariffs after the Supreme Court of the United States struck down previous reciprocal duties.

Ambassador Jamieson Greer described the measures as a way to correct human rights abuses and distortive trade practices. To minimize economic disruption, the USTR granted exemptions for critical materials, including semiconductors, pharmaceuticals, and aerospace products. Additionally, the USTR established tariff rate quotas for Bangladesh, Cambodia, Indonesia, and Malaysia to encourage the use of U.S. textile inputs.

International reactions were largely hostile. New Zealand Prime Minister Christopher Luxon and EU foreign policy director Kaja Kallas called the claims unfounded and baseless. Brazil vowed to challenge the move at the World Trade Organization, and China condemned the action as an unreasonable trade war. Meanwhile, President Trump separately signed proclamations for 50% tariffs on specific Canadian goods, such as wine and cement, effective August 19, 2026, and proposed tariffs on generic drugs starting in 2028 to reshore pharmaceutical production.