US Imposes Tariffs on 60 Trading Partners Over Forced Labor Imports

The United States has initiated new tariffs on imports from 60 trading partners, including major economies like China, India, and the European Union, in a decisive move to combat forced labor practices within global supply chains. Effective July 24, 2026, these duties were imposed following extensive investigations by the Office of the U.S. Trade Representative (USTR), which concluded that these nations have failed to adequately ban or effectively enforce prohibitions on goods produced with forced labor.

This latest action by the Trump administration coincides with the expiration of a temporary 10% global import tax, which itself replaced the 'Liberation Day' tariffs introduced in 2025 and later invalidated by a Supreme Court decision. USTR Ambassador Jamieson Greer, acting under the direction of President Trump, finalized this measure under Section 301 of the Trade Act of 1974. The USTR launched investigations into 60 economies in March 2026, conducting two rounds of public hearings and reviewing over 2,100 public comments before reaching its determination. Trading partners that have not adopted laws prohibiting forced labor imports will face a 12.5% tariff, while those with such commitments but deemed to have failed in effective enforcement will incur a 10% tariff.

The tariffs apply to leading trading partners, collectively accounting for approximately 99.4% of U.S. imports. Countries such as China, Japan, and South Korea will face the higher 12.5% tariff rate, whereas the European Union, the United Kingdom, Canada, Mexico, and India, which have some prohibitions but are found to be deficient in enforcement, will be subject to a 10% levy. Certain products are exempted from these new tariffs, including informational materials, donations, accompanied baggage, goods already subject to Section 232 tariffs (like steel and aluminum), specific energy products, fertilizers, and items covered by the United States-Mexico-Canada Agreement (USMCA).

This development is expected to have a significant impact on global supply chains. The United States has maintained a ban on forced labor imports for nearly a century, rigorously enforcing it as part of its commitment to fostering fair competition in international trade. However, economists caution that tariffs can lead to higher consumer prices and potentially slower economic growth. This initiative is framed as part of a broader strategy aimed at eradicating modern slavery from global supply chains.

The Trump administration asserts that these tariffs will not only address a critical human rights abuse but also correct a distortive trade practice, thereby enhancing the welfare of workers worldwide. U.S. officials indicate that the action is intended to incentivize trading partners to make progress on forced labor prohibitions. The market will closely monitor how these trading partners respond to the new tariffs and the long-term implications for global trade policies.