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U.S. sets new 10%-12.5% tariffs on 60 partners

NEWS

July 24, 2026 at 00:25 UTC

3 min read
Stacked shipping containers at a port illustrating new 10%-12.5% tariffs on trade partners

Key Points

  • 01U.S. will impose 10%-12.5% tariffs on imports from 60 trading partners from July 24, 2026
  • 02New duties replace an expiring temporary 10% global tariff under Section 301
  • 03About 17 countries, including the UK, Canada, Mexico and India, receive a 10% rate
  • 04China and Vietnam are among economies facing a higher 12.5% tariff rate

New forced-labor tariffs take effect July 24

The United States is introducing a new wave of tariffs that will apply to imports from 60 trading partners starting at 12:01 a.m. ET on July 24, 2026. The duties, set in a range between 10% and 12.5%, follow an investigation into alleged use of forced labor in goods shipped to the U.S. The measures are structured as country-specific rates rather than a single global levy and are intended to remain in place after earlier, temporary tariffs expire at the same moment.

The Office of the U.S. Trade Representative said the tariffs will cover roughly 99.4% of U.S. imports from the affected partners. The move significantly reshapes the tariff landscape for a broad array of products and trading relationships, with most major economies included in the new framework.

Section 301 replaces expiring global tariff

The new duties are imposed under Section 301 of the Trade Act of 1974, a legal mechanism that allows the U.S. to respond to what it determines are unfair trade practices. These tariffs replace a temporary 10% global duty that was scheduled to lapse at 12:01 a.m. ET on July 24, 2026. By shifting to a Section 301 structure focused on specific partners and alleged forced-labor risks, the administration is changing both the legal basis and the design of its tariff policy.

A Federal Register notice and accompanying fact sheet describe the duties as a successor to the outgoing global tariff, which had applied at a uniform rate. Under the new framework, countries are differentiated by their responses to forced-labor concerns, and tariff levels vary accordingly within the 10% to 12.5% band.

Country groupings and tariff tiers

U.S. officials divided the 60 trading partners into groups facing different tariff levels. A subset reported as 17 countries was assigned the lower 10% rate after being assessed as having adopted at least some restrictions aimed at combating forced labor. Examples in this lower band include major partners such as the United Kingdom, Canada, Mexico and India.

Most of the remaining trading partners fall under a higher 12.5% rate. China and Vietnam are among the economies cited as facing this upper tier. In some cases, tariff levels may vary by product within the overall 10% to 12.5% range, but the broad pattern is a lower rate for countries judged to have taken steps on forced labor and a higher rate for those that have not.

Policy rationale and scope of impact

The tariffs follow a months-long investigation into forced labor in supply chains, during which officials collected testimony and evidence on labor practices in exporting countries. U.S. Trade Representative Jamieson Greer stated that the action is intended to address both human rights abuses and distortive trade practices linked to forced labor, with the aim of improving conditions for workers globally.

Because the duties apply to 60 trading partners and cover almost all U.S. imports, the measures represent a broad restructuring of U.S. trade costs. The scale of coverage indicates that many sectors will see changes in applied tariff rates, though the precise effects will depend on each country’s assigned rate and product mix.

Key Takeaways

  • 01The new tariff package fundamentally shifts U.S. policy from a uniform global rate to differentiated country rates tied to forced-labor assessments.
  • 02Most major trading partners are now grouped into explicit tiers, with a clear incentive structure favoring those that adopt restrictions on forced labor.
  • 03With coverage of roughly 99.4% of U.S. imports from targeted partners, the tariffs are positioned to have wide-ranging effects across trade flows and supply chains.