Trump Imposes Forced-Labor Tariffs on 60 Trading Partners

President Donald Trump implemented a sweeping new tariff regime starting July 24, 2026, targeting 60 trading partners. These duties, ranging from 10% to 12.5%, were enacted under Section 301 of the Trade Act of 1974 and are justified as a crackdown on forced labor in global supply chains. The move serves as a legal workaround after the Supreme Court of the United States ruled in February 2026 that previous reciprocal tariffs imposed under the International Emergency Economic Powers Act were unconstitutional.

Under the new structure, countries like Canada, Mexico, and the United Kingdom face a 10% rate, while nations including China, Japan, and Australia are subject to 12.5%. Simultaneously, the administration imposed 25% tariffs on Brazilian goods and announced 50% tariffs on approximately $20 billion of Canadian imports, effective August 19, citing discriminatory treatment of U.S. dairy, alcohol, and automotive products. Trump also issued a deadline for generic drug manufacturers to reshore production to the U.S. or face 100% duties by August 2028.

Global reactions have been overwhelmingly critical. Leaders from Brazil, Australia, and the European Union condemned the forced-labor claims as a pretext for protectionism. Domestically, the Liberty Justice Center filed a lawsuit in the U.S. Court of International Trade on behalf of small businesses, arguing the administration is exceeding its legal authority. Trump defended the policies at the White House, claiming they are a primary driver of $19.2 trillion in domestic investment.