The United States' Customs Tariff Regulation Covering 60 Countries (July 2026)

The administration of United States President Donald Trump implemented new customs duties on 24 July 2026 against 60 trading partners on the grounds that forced labour practices had not been sufficiently curbed. The new tariffs, ranging from 10 percent to 12.5 percent, came into effect on the same day that temporary global tariffs of 10 percent expired. The U.S. administration stated that the measure affects trading partners accounting for approximately 99 percent of the country’s total imports. The European Union was treated as a single economic bloc, leading to the assertion that the number of affected countries exceeded 80.

U.S. Trade Representative Jamieson Greer explained the rationale behind the decision, noting that the United States has had legislation prohibiting the import of goods produced through forced labour for nearly a century and has enforced these rules strictly. Greer emphasized that other trading partners must also implement similar measures, stating that the new tariffs aim to advance the protection of human rights and prevent unfair competition in international trade. The U.S. administration argued that forced labour is not merely a human rights violation but also a trade practice that distorts market conditions.

The new customs duties were imposed under Section 301 of the Trade Act of 1974. This provision grants the U.S. President the authority to impose additional customs duties and other commercial sanctions on countries deemed to engage in “unfair”, “unreasonable” or “discriminatory” trade practices. During his first term, the Trump administration applied broad tariffs on China based on the same legal authority, and those measures remained in force after undergoing judicial review.

The legal basis for the decision was shaped by prior judicial rulings on earlier tariff measures. The Trump administration had previously invoked the International Emergency Economic Powers Act (IEEPA) of 1977, classifying the U.S. chronic trade deficit as an extraordinary national security threat and imposing high tariffs on nearly all countries. However, in February 2026, the U.S. Supreme Court ruled that IEEPA did not provide a legal basis for imposing customs duties in this context. In response, the administration temporarily implemented global tariffs of 10 percent under Section 122 of the Trade Act, but this measure could only be applied for a maximum of 150 days, expiring on 24 July 2026. The new Section 301 tariffs are considered to rest on a stronger legal foundation and are viewed as more resilient to judicial scrutiny.

Under the new measure, countries that prohibit or have committed to prohibiting the import of goods produced through forced labour are subject to a 10 percent customs duty. This group includes the European Union, Canada, the United Kingdom and India. The U.S. administration stated that these countries have developed legal mechanisms to prevent forced labour and are therefore subject to the lower tariff rate.

Countries such as China, Japan, South Korea, Brazil and Chile are subject to the higher tariff rate of 12.5 percent. The U.S. administration asserted that these countries have either failed to take adequate measures against forced labour or that their existing practices are insufficient. In contrast, strategic products such as oil, natural gas and fertilizers, as well as goods covered under the United States-Mexico-Canada Agreement (USMCA), are exempt from the new tariffs.

The new tariffs have been criticized by many countries. The Brazilian government described the 12.5 percent customs duty as “arbitrary and unjustified” and indicated it is considering imposing retaliatory tariffs against the United States. In its official statement, Brazil’s administration accused Washington of exploiting a significant human rights issue for political and commercial purposes and rejected claims that 59 countries and the European Union engage in unfair trade practices.

The Chilean government also responded to the measure. Chile’s Undersecretary for Foreign Economic Relations Paula Estévez stated that Chile possesses strong labour institutions, a comprehensive framework of labour law and determined policies to prevent forced labour. The Chilean administration argued that the U.S. assessment does not reflect the country’s actual practices.

The European Union has adopted a cautious but positive stance toward the U.S. tariff decision. A spokesperson for the European Commission noted that the new measure is consistent with the EU-U.S. joint trade agreement reached in Turnberry, Scotland in 2025. The statement assessed that the decision creates positive momentum for ongoing negotiations between the two sides on tariffs.

EU officials also announced that negotiations with Washington will continue to explore additional tariff exemptions and deepen economic cooperation. Under the Turnberry Agreement, the United States agreed to apply a 15 percent customs duty on imports from the EU, while the European Union committed to eliminating customs duties on the majority of U.S. industrial products.

The U.S. administration stated that the fundamental justification for the new tariffs is the alleged widespread use of forced labour in international trade. The International Labour Organization’s (ILO) 1930 Forced Labour Convention defines forced labour as “all work or service exacted from any person under the menace of any penalty and for which the person has not offered himself voluntarily”. According to ILO data, approximately 27.6 million people worldwide were subjected to forced labour conditions on any given day in 2021.

The U.S. Trade Representative also clarified that the current measure is not the final step. The agency announced the initiation of a new Section 301 investigation into 16 countries accused of engaging in excessive production that lowers global market prices and places U.S. companies at a competitive disadvantage. It was indicated that after the completion of this review, additional customs duties or new commercial sanctions may be imposed on these countries, which collectively account for approximately 70 percent of U.S. imports.