President Donald Trump announced new tariffs ranging from 10% to 12.5% on imports from 60 countries that account for 99% of U.S. imports. The tariffs take effect at 12:01 a.m. Friday, July 25, 2026, as earlier temporary 10% worldwide tariffs expire. Those temporary duties were issued under one trade law, Section 122 of the Trade Act of 1974, which allows short-term tariffs up to 15% for 150 days. The new tariffs rely on a different law, Section 301 of the same act, which has no fixed expiration and can stay in place until the underlying problem is resolved (NPR).

U.S. Trade Representative Jamieson Greer said the tariffs target countries that inadequately enforce bans on goods produced by forced labor. A USTR report concluded that the countries under investigation allow forced labor to persist by failing to screen out at-risk imports (NPR).

The tariff structure allows for country-level adjustments. India, for example, had its rate reduced from 12.5% to 10% after strengthening its forced labor enforcement. Some country-level details were provided by a senior administration official who spoke on condition of anonymity (NPR).

Certain products are exempt, including oil, gas, fertilizer, and goods that qualify for duty-free status under the U.S.-Mexico-Canada Agreement, or USMCA (NPR).

The investigations behind these tariffs began March 12, 2026, when USTR launched 60 Section 301 probes into countries' failure to enforce forced labor import bans. The agency reviewed more than 1,600 public submissions. The Section 301 Committee held public hearings starting July 7, 2026, at the U.S. International Trade Commission. USTR announced its decision to take action on July 6, 2026 (USTR).

Reuters reported on June 3, 2026, that USTR had proposed 10% additional duties on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, and Bangladesh (Reuters). USTR said the tariffs on the 60 economies will cover 99.4% of goods imported to the United States (Reuters).

Democratic state attorneys general opposed the administration's plan to impose tariffs over forced labor concerns (Reuters). Latin American countries and some steelmakers also urged the administration to exempt them from the proposed 10% to 12.5% tariffs (Reuters). Neither effort produced a blanket exemption, though the USMCA duty-free carveout and India's rate reduction show the administration designed the policy to reward specific enforcement actions.

Separately, USTR has launched another Section 301 investigation into whether 16 countries accounting for 70% of U.S. imports have overproduced goods. That probe is independent of the forced labor tariffs now taking effect (NPR).

The broader context here is that these tariffs shift U.S. trade policy from one legal basis to another. The Section 122 temporary tariffs had a built-in 150-day limit and a 15% cap. Section 301 carries no expiration date, meaning the new tariffs could remain in place indefinitely. This is not a simple extension of the temporary duties — it rests on a different legal finding and has no built-in sunset.

The use of Section 301 for forced labor enforcement builds on existing law, including Section 307 of the Tariff Act of 1930, which blocks imports of goods made with forced labor. The new tariffs go further by imposing duties on entire countries for failing to enforce their own forced labor bans, rather than targeting specific shipments or producers.

India's rate reduction offers a concrete example of how the administration tied tariff levels to enforcement outcomes. Whether other countries can negotiate similar adjustments by changing their own forced labor enforcement practices will depend on USTR's willingness to modify country-specific rates outside the formal Section 301 review process.