The United States has imposed new tariffs of 10% and 12.5% on goods from 60 trading partners, including several South Asian economies, in the latest overhaul of its trade policy under President Donald Trump’s administration.
The new duties, which took effect at 12:01 a.m. EDT on Friday immediately after a temporary 10% global tariff expired, were introduced under Section 301 of the Trade Act of 1974. The White House said the measures are intended to address what it considers inadequate enforcement of forced labour import bans by trading partners while preserving a broad tariff regime following a legal setback earlier this year.
Among the South Asian countries affected, India, Bangladesh, Pakistan and Sri Lanka have each been assigned a 10% tariff on goods exported to the United States. The same rate also applies to Argentina, Britain, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, Indonesia, Jordan, Malaysia, Mexico and Trinidad and Tobago.
According to the administration, the new tariffs cover 99.4% of all U.S. imports, although numerous products remain exempt. These include oil and gas, fertiliser, certain food items, aircraft and parts, critical minerals, and goods already subject to Section 232 national security tariffs, including autos, steel, aluminium and copper. Products that comply with the U.S.-Mexico-Canada Agreement are also excluded because of the integrated North American supply chain.
The latest action follows a ruling by the U.S. Supreme Court in February that struck down the Trump administration’s previous “reciprocal” tariffs of between 10% and 50%, which had been imposed last year under a national emergencies law in an effort to reduce the U.S. trade deficit. By relying on Section 301 of the Trade Act of 1974, the administration has adopted a legal mechanism that has previously survived court challenges and is regarded as carrying a lower legal risk.
The White House said goods already in transit when the tariffs came into force will remain exempt until 12:01 a.m. EDT on 28 July.
U.S. Trade Representative Jamieson Greer said the measures were designed to encourage stronger enforcement of forced labour bans by America’s trading partners.
“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,” Greer said. “Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere.”
Greer has previously stated that countries which have already concluded trade agreements with Washington setting maximum U.S. tariff rates would not see the new forced labour duties raise tariffs above those negotiated limits.
While many countries received the 10% rate, the European Union, Taiwan, Japan, South Korea and Switzerland were assigned rates which, when combined with existing most-favoured-nation tariffs, total either 10% or 12.5%. The remaining 38 countries, including Vietnam and China, received a 12.5% tariff.
The administration noted that Vietnam had recently introduced more detailed rules prohibiting imports of goods made with forced labour. China, meanwhile, remains accused by the United States of detaining Uyghur minorities in work camps, an allegation Beijing denies. Administration officials have also indicated that tariffs on Chinese goods could eventually return to the 20% level agreed during a November 2025 trade truce between President Trump and Chinese President Xi Jinping, although they said they do not intend to exceed that level.
The announcement prompted criticism from several trading partners. European Union foreign policy chief Kaja Kallas questioned Washington’s justification, saying the bloc’s labour standards compared favourably with those in the United States. Australia and Brazil described the tariffs as unjustified and said they would seek their removal, while Norway said there was “no basis” for the measures. Canada characterised the tariffs as “unilateral” and said it would continue engaging with the United States on the issue.
Trade specialists said the new measures closely resemble the previous tariff regime in their overall economic effect but may prove more difficult to challenge in court because Section 301 has withstood earlier legal scrutiny. Officials also maintained that the new duties respond to bipartisan calls in Congress to eliminate forced labour from global supply chains while preserving a broad baseline tariff on imports into the United States.
