The Trump administration has introduced a new tariff regime affecting imports from 60 economies, replacing the temporary 10% global tariff that expired after 150 days. The new measures, implemented under Section 301 of the Trade Act of 1974, took effect at 12:01 a.m. EDT on Friday and now apply to countries representing approximately 99.4% of total U.S. imports.
Announced by the Office of the U.S. Trade Representative (USTR), the tariffs range from 10% to 12.5% and affect many of the United States’ largest trading partners, including China, Canada, Mexico, the European Union, India and Vietnam.
The new duties follow Section 301 investigations launched on March 12 to determine whether 60 economies adequately prohibit or enforce bans on goods produced with forced labor. In June, U.S. Trade Representative Jamieson Greer concluded that the policies of the economies under review were unreasonable and placed an undue burden on U.S. commerce, leading the administration to adopt the new tariff framework.
Greer said the United States has enforced restrictions on imports made with forced labor for nearly a century and argued that its trading partners should adopt similarly rigorous standards. According to the administration, the new tariffs are intended to address both human rights concerns and trade practices that disadvantage workers.
Under the new structure, imports from countries including Canada, Mexico, India, Indonesia, Malaysia, Pakistan, Bangladesh, Cambodia, Guatemala, El Salvador, Honduras, Jordan, Sri Lanka, Argentina, Trinidad and Tobago, the United Kingdom and Ecuador will generally face a 10% tariff.
For the European Union and Taiwan, tariffs have been structured so that the combined Most-Favored Nation (MFN) tariff and the new Section 301 duty equal 10%. Meanwhile, Japan, South Korea and Switzerland will be subject to combined tariff levels capped at 12.5%.
The remaining 38 economies—including China, Australia, Brazil, Thailand, Vietnam and South Africa—will generally be subject to 12.5% tariffs.
To reduce the impact on domestic manufacturers and consumers, the administration has excluded hundreds of products from the new duties. Exemptions cover oil and natural gas, fertilizers, selected food products, raw materials unavailable from U.S. suppliers, products that could cause widespread economic disruption, and goods not produced in sufficient quantities domestically.
The White House also instructed the USTR to establish tariff-rate quotas later this year for certain textile and apparel imports from Bangladesh, Cambodia, Indonesia and Malaysia. The measure is intended to encourage greater use of cotton and textile inputs produced in the United States.
Products that were already in transit before the tariffs came into force will remain exempt until July 28. In addition, many goods that qualify under the U.S.-Mexico-Canada Agreement (USMCA) and products covered by other trade authorities will continue to be excluded from the new tariff regime.
The announcement prompted swift reactions from several trading partners. China criticized the decision as another unilateral trade measure, while Australia, Brazil and Norway questioned its legal basis.
The European Union stated that the new duties remain within the tariff limits established under its recent trade agreement with Washington. The United Kingdom said its bilateral trade agreement with the United States continues to provide favorable treatment for key exports, including whisky, while Canada confirmed it will continue discussions with U.S. officials regarding the new measures.
