Trump imposes new tariffs on EU, China and 58 other countries

WASHINGTON — The Trump administration has launched a new round of tariffs affecting imports from 60 trading partners, replacing an expiring temporary global duty with a fresh trade measure tied to labor rights enforcement.

The new policy, which took effect early Friday, introduces tariffs of 10% and 12.5% on nearly all U.S. imports. The White House argues the action is designed to pressure trading partners to strengthen efforts against forced labor while preserving a baseline tariff after the U.S. Supreme Court invalidated President Donald Trump's earlier reciprocal tariff program.

Announced through a Federal Register notice, the duties cover approximately 99.4% of goods entering the United States, although several categories—including oil and gas, fertilizers, selected food products, aircraft parts, critical minerals and goods already covered by national security tariffs—remain exempt.

New Legal Path for Tariffs

Unlike the reciprocal tariffs struck down earlier this year, the latest measures rely on Section 301 of the Trade Act of 1974, a legal framework that has historically survived judicial scrutiny.

The administration says the policy addresses what it considers an uneven global approach to preventing forced labor in supply chains.

"The United States has had a forced labor import ban for nearly a century, and rigorously enforces it. It's well past time for our trading partners to do the same," U.S. Trade Representative Jamieson Greer said.

Greer described the tariffs as a response to both human rights concerns and trade distortions, adding that the move is intended to improve conditions for workers worldwide.

The temporary 10% global tariff expired at 12:01 a.m. EDT Friday, with the new duties taking effect immediately. Goods already in transit will remain exempt until July 28.

Countries Face Different Tariff Rates

A group of countries—including Britain, Canada, India, Indonesia, Malaysia, Mexico, Pakistan, Bangladesh, Cambodia, Argentina, Australia and Sri Lanka—will face a 10% tariff.

Meanwhile, imports from the European Union, Japan, South Korea, Taiwan and Switzerland will be subject to rates that, when combined with existing most-favored-nation duties, total either 10% or 12.5%.

Another 38 countries, including China and Vietnam, will face the higher 12.5% rate.

Trump administration officials have also indicated they intend to restore tariffs on Chinese products to 20%, consistent with a trade understanding reached with President Xi Jinping in late 2025, while avoiding any increase beyond that level.

International Opposition Builds

Several governments swiftly rejected Washington's justification for the tariffs.

European Union foreign policy chief Kaja Kallas questioned the administration's claim that Europe had failed to address labor standards. "If you compare our labour laws to the ones of the United States, I mean, we have paid vacations, we have very good labour conditions for our employees, so it's not really grounded."

She added that Brussels had expected Washington to honor an existing trade understanding, describing the announcement as "a negative surprise."

Australia's Trade Minister Don Farrell called the tariffs "completely unjustified" and pledged to continue pressing U.S. officials to eliminate duties on Australian exports.

Brazil accused Washington of using labor rights as a pretext for protectionist trade policy, calling the measures arbitrary and announcing plans to invoke its Reciprocity Law while challenging the tariffs through the World Trade Organization.

Mexico offered a more measured response. Economy Minister Marcelo Ebrard said the new measure would not significantly alter Mexico's effective tariff burden because it effectively replaces the previous levy.

Malaysia's Prime Minister Anwar Ibrahim welcomed the country's comparatively lower tariff rate but said negotiations with Washington would continue to safeguard Malaysian interests.

The Philippines also defended its labor record, emphasizing that it has strengthened enforcement mechanisms against forced labor in line with International Labour Organization standards while reaffirming its commitment to maintaining stable trade ties with the United States.

Canada, already facing separate U.S. tariffs on billions of dollars in exports, said it would continue discussions with Washington to resolve outstanding trade disputes.

Legal Outlook

Trade experts believe the administration has chosen a stronger legal foundation after its earlier defeat in court.

Kelly Ann Shaw, a former White House trade adviser, said the latest action largely reflects what businesses had anticipated and suggested its economic impact would resemble existing trade arrangements because several partners had already negotiated tariff ceilings.

Ryan Majerus, a former Commerce Department official and now a trade lawyer, said Section 301 provides the administration with significant flexibility. "Once the 301 duties are placed, they have a lot of flexibility to adjust them. It's a sledgehammer."

He added that courts may be less inclined to overturn measures framed as efforts to eliminate forced labor from international supply chains.

Administration officials insist the policy is not simply a replacement for the expired reciprocal tariffs, arguing instead that it reflects bipartisan calls in Congress to strengthen restrictions on goods linked to forced labor while addressing what they describe as an unfair competitive advantage enjoyed by countries with weaker enforcement standards.