The White House restored a near-global tariff wall Friday, imposing new 10% and 12.5% duties on goods from 60 trading partners by invoking forced labor violations—a strategic pivot after the Supreme Court struck down President Donald Trump's "reciprocal" tariffs in February. The move affects 99.4% of U.S. imports from countries including the EU, China, Canada, and Mexico.
The new tariffs took effect at 12:01 a.m. EDT Friday, the exact moment Trump's temporary 10% global tariff expired after 150 days. Goods already in transit won't face the duties until 12:01 a.m. EDT on July 28. U.S. Trade Representative Jamieson Greer framed the action as both a human rights imperative and an economic correction. "The United States has had a forced labor import ban for nearly a century, and rigorously enforces it," Greer said in a statement. "It's well past time for our trading partners to do the same."
Legal Strategy Shifts After Court Defeat
The administration imposed the duties under Section 301 of the Trade Act of 1974, a statute that's survived prior court challenges and carries less legal risk than the national emergencies law the Supreme Court rejected. That February ruling dismantled Trump's 10% to 50% "reciprocal" duties, which he'd imposed last year to shrink the U.S. trade deficit. Section 301 allows the administration to maintain a tariff floor on virtually all imports despite that setback.
The U.S. assigned a 10% rate to 17 countries it claims have forced labor bans but don't effectively enforce them. That list includes Argentina, Bangladesh, Britain, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, and Trinidad and Tobago. The European Union, Taiwan, Japan, South Korea, and Switzerland received rates that, combined with existing most-favored-nation tariffs, total 10% or 12.5%. The remaining 38 countries face a 12.5% rate.
China, accused by the U.S. of detaining Uyghur minorities in work camps—an allegation Beijing denies—was hit with the 12.5% duty. Vietnam also received that rate despite issuing a new decree this week with detailed rules banning forced labor imports. Trump administration officials have told Chinese counterparts they intend to rebuild tariffs on Chinese goods back up to the 20% agreed upon in a trade truce with President Xi Jinping in November 2025, but won't exceed that level. Prior to Friday, China's tariff rate had fallen to 10%, excluding the 25% imposed during Trump's first term on industrial goods.
Trading Partners Respond With Caution
Greer previously pledged that countries with trade deals capping U.S. tariff rates wouldn't see duties pushed above those caps. The European Commission acknowledged this commitment. "The EU notes positively the fact that this outcome is in line with the U.S. tariff commitments agreed under the EU-U.S. Joint Statement," a spokesperson said, adding it provided "positive momentum" to continue work on exploring further tariff exemptions and deepening cooperation.
French Trade Minister Nicolas Forissier said the tariffs provided greater visibility for businesses, though the legal basis raised questions. The Swiss government also confirmed the United States was adhering to past commitments on tariff ceilings, in its case up to 12.5%, while disputing the forced labor allegations.
Britain said the move would have no negative effects. "Our agreement with the U.S. remains in place, and today we see an improvement to our trading terms with zero tariffs on whisky and medical technology," a government spokesperson said. The British Chamber of Commerce called it a mixed picture—welcoming the removal of whisky tariffs and a lower rate than competitors for steel, but noting a loss in comparative advantage over the EU for other goods.
China said it opposed all unilateral tariffs, adding that trade wars didn't serve any parties. Australia and Brazil described the new tariffs as unjustified and said they'd seek removal, while Norway said there was "no basis" for them. Canada, hit Monday with new Trump tariffs on $20 billion worth of goods, issued a muted response. Dominic LeBlanc, Canada's minister in charge of U.S. trade, said, "We will continue engaging constructively with the United States on this matter, as well as other outstanding issues, over the coming weeks to the mutual benefit of our citizens."
Exemptions Limit Economic Disruption
Numerous products are exempted from the duties, including oil and gas, fertilizer, certain foodstuffs, and goods already subject to Section 232 national security tariffs such as autos, steel, aluminum, and copper. Aircraft and parts will also be exempted, along with critical minerals. A Federal Register notice announced the tariffs and included 471 products on an exclusion list.
Kelly Ann Shaw, a former White House trade adviser in Trump's first term and now a partner with the Akin Gump Strauss Hauer & Feld law firm, said the new tariffs tracked what had been telegraphed, though some changes had been made. "I think this is more status quo in terms of the economic impact," she said.
The Antwerp World Diamond Centre said the restored exemption was significant news for the local diamond sector. Belgium exported $2.1 billion of polished diamonds to the United States in 2024. The exemption had lapsed after the Supreme Court struck down Trump's global tariffs in February.
Former EU chief negotiator Ignacio Garcia Bercero, now a senior fellow at think tank Bruegel, said the United States had sought to ensure the new duties respected the tariff aspects of the EU-U.S. trade deal. He noted that additional tariffs from a further Section 301 investigation into excess capacity were still to come. That probe targets 16 trading partners, including the EU, China, India, Japan, South Korea, and Switzerland.
Why This Matters:
The administration's shift to Section 301 demonstrates how legal constraints are reshaping trade policy execution without abandoning core objectives. By anchoring tariffs in forced labor enforcement—a century-old U.S. statute with bipartisan support—the White House maintains leverage over trading partners while reducing judicial vulnerability. The extensive exemptions for energy, food, and critical minerals limit consumer price impacts and preserve supply chain stability for strategic sectors. But the approach preserves fiscal benefits: tariff revenue continues flowing to federal coffers while protecting domestic industries from unfair competition. The muted international response, particularly from major economies like the EU and Britain, suggests trading partners recognize the legal durability of Section 301 and prefer negotiation to confrontation. That pragmatism may facilitate bilateral deals that advance U.S. interests without the disruption of blanket tariff wars. The pending excess capacity investigation, however, signals more trade friction ahead.