Trump Imposes New Tariffs on 60 Nations Over Forced Labor Allegations
President Donald Trump has imposed new tariffs ranging from 10% to 12.5% on 60 trading partners, effective July 24, 2026.
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ABC News US
President Donald Trump has imposed new tariffs ranging from 10% to 12.5% on 60 trading partners, effective July 24, 2026. The administration cites inadequate enforcement of forced labor bans as the justification under Section 301 of the Trade Act of 1974. Exemptions include oil, gas, fertilizer, and USMCA-qualified goods. The move faces international pushback, with Brazil planning retaliatory measures and the EU rejecting the labor-enforcement claims. The U.S. Trade Representative has also launched an investigation into potential overproduction in 16 countries.
Context
The United States has historically utilized Section 301 of the Trade Act of 1974 to address trade practices deemed discriminatory or burdensome to domestic commerce. This latest action follows a global context where the International Labor Organization reported that approximately 27.6 million people were in forced labor worldwide in 2021.
Supportive perspectives
The Trump administration invoked Section 301 of the Trade Act of 1974 to implement these measures. The law lets the president impose tariffs on countries with trade practices deemed discriminatory to US interests.
Officials justified the tariffs by citing the failure of the 60 affected nations to adequately enforce bans on goods produced by forced labor. The International Labor Organization estimated 27.6 million people were in forced labor worldwide in 2021.
The administration included specific exemptions to protect domestic supply chains and existing trade agreements. Products such as oil, gas, fertilizer, and goods qualifying under the US-Mexico-Canada Agreement remain exempt from the new duties.
The European Commission stated that the final tariff outcome is consistent with previous U.S.-EU tariff commitments. The European Commission's statement indicates the outcome matches prior US-EU tariff commitments.
Critical perspectives
Brazil plans to trigger its reciprocity law to impose retaliatory tariffs on the United States. The Brazilian government also intends to file a formal complaint with the World Trade Organization regarding the new measures.
EU foreign policy representative Kaja Kallas described the tariffs as a negative surprise. She stated that the accusations regarding the EU failing to enforce labor laws are unfounded.
U.S. Representative Richard Neal criticized the tariffs on July 24, 2026. He argued that the forced labor justification serves as a pretext for policies driven by personal grievances rather than legitimate trade concerns.
Chile, Australia, and Japan each objected to the measures. Chile stated the tariffs are inconsistent with its labor standards, Australia's Defense Minister Richard Marles said the tariffs made "no sense", and the Japanese government issued a statement expressing regret.
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