The United States imposed new tariffs of 10 percent to 12.5 percent on imports from 60 economies on July 25, 2026. The action replaced a temporary 10 percent global levy and tied the new rates to whether trading partners restrict imports made with forced labor.

The Office of the United States Trade Representative (USTR) said its Section 301 action followed investigations, two rounds of public hearings and more than 2,100 public comments. The agency said the 60 economies had failed either to impose or effectively enforce prohibitions on importing goods produced with forced labor.

India enters the 10 percent tier

The schedule does not apply one rate to every economy. The presidential memorandum assigns a 10 percent tariff to India and 16 other economies that adopted, committed to or partially operated restrictions on forced-labor imports. India had been in the proposed 12.5 percent tier before it adopted an import prohibition during the consultation period.

The European Union and Taiwan receive a different calculation: the new Section 301 duty brings the combined most-favored-nation and Section 301 rate to no more than 10 percent. The equivalent ceiling is 12.5 percent for Japan, South Korea and Switzerland. Other investigated economies generally face an additional 12.5 percent duty.

A container ship passes stacks of freight containers at a port (illustrative image)

Exemptions narrow the reach of the headline rates

The White House memorandum exempts products when tariffs could disrupt the US economy, leave domestic supply unavailable or fail to advance the stated purpose of the investigations. It also provides selected exemptions intended to encourage some economies to fulfill commitments on forced-labor import controls.

These carve-outs mean the listed country rate is not a complete description of the duty on every product. Importers must identify the product classification, existing most-favored-nation rate and any economy-specific exemption before determining the additional charge.

The policy follows a Supreme Court defeat

The Trump administration turned to Section 301 after losing a separate dispute over emergency tariff powers. The US Supreme Court held on February 20, 2026, that the International Emergency Economic Powers Act does not authorize the president to impose tariffs. The administration then used Section 122 of the Trade Act of 1974 for a temporary 10 percent global tariff, which was limited to 150 days.

Section 301 follows a different process. It permits action after USTR finds that a foreign government practice is unjustifiable, unreasonable or discriminatory and burdens or restricts US commerce. The forced-labor tariffs followed 60 separate investigations begun in March 2026.

Brazil and Chile challenge the US findings

Brazil and Chile, both placed in the 12.5 percent tier, rejected the US justification. The Associated Press reported that Brazil called the measure arbitrary and unjustified, planned to invoke its reciprocity law and intended to take a complaint to the World Trade Organization. Chile said the action was inconsistent with its labor institutions and the record submitted during the investigation.

The same report said US importers usually seek to pass tariff costs to customers through higher prices. The eventual effect depends on exchange rates, supplier margins, substitution and the scope of exemptions. No measured consumer-price effect from this specific action was available when this report was published.

The rates can still change

The presidential memorandum authorizes the US trade representative to modify or terminate tariffs and exemptions for an economy. Further negotiations or changes in enforcement could therefore alter the schedule.

The published US documents state the administration's findings about forced-labor import controls. APPI News did not independently assess the enforcement systems of all 60 economies, and the tariff decision does not by itself establish how much forced-labor production occurs within any one of them.