U.S. President Donald Trump’s new global tariffs, effective July 24, 2026, impose 10% to 12.5% duties on imports from 60 countries, targeting alleged forced labor violations. Trade partners from Australia to Brazil condemned the move, while exemptions for key goods and legal challenges loom.
The United States on Friday imposed 10% to 12.5% tariffs on imports from 60 economies, marking a shift from temporary levies that expired at midnight. The action, justified as a response to alleged forced labor practices, affects 99.4% of U.S. imports and replaces earlier tariffs struck down by the Supreme Court. Trade partners swiftly criticized the move, with Australia’s minister calling it completely unjustified
and Brazil labeling the duties “arbitrary.”
Global Reactions to the Tariff Expansion
Major trading partners expressed outrage over the forced-labor rationale. Australian Trade Minister Don Farrell called the 12.5% tariff on his country completely unjustified,
noting Canberra’s robust anti-slavery laws. We believe that amongst all of the countries in the world Australia does take the issue of slavery, modern slavery, seriously,
he said, vowing to lobby for tariff removal. New Zealand Prime Minister Christopher Luxon described the duties as extremely disappointing,
while Brazil’s government rejected the measure as “unjustified” and “arbitrary.”
The European Union and Japan also voiced concerns. EU foreign policy chief Kaja Kallas called the U.S. stance “unfounded,” citing stronger labor protections in Europe. Japan’s Chief Cabinet Secretary Minoru Kihara reiterated that Tokyo had been reassured no additional tariffs would follow an existing 10% duty. It is regrettable that the measure imposes tariffs on the grounds of non-existence of measures banning imports of goods made by forced labor,
Kihara said, noting Japan’s compliance with international standards.
Exemptions, Legal Frameworks, and Regional Impacts
The tariffs, enacted under Section 301 of the Trade Act of 1974, target countries that failed to enforce bans on forced labor. However, exemptions for oil, gas, and U.S.-Mexico-Canada Agreement (USMCA)-compliant goods softened the blow for some regions. Asia, particularly, benefited from carve-outs for electronics, as noted by Tianchen Xu of the Economist Intelligence Unit. Asia will continue to benefit from tariff carve-outs, which include most types of electronics from consumer devices to chips,
Xu said, citing historical exemptions under Trump’s second term.
Countries like India and Malaysia faced lower 10% rates after strengthening labor enforcement, while 12.5% duties hit Australia, China, and South Korea. The U.S. Trade Representative’s office emphasized that the move provides a more durable legal foundation than previous emergency-authority tariffs, which were invalidated by courts. However, experts warned of potential future actions.
Corporate and Economic Concerns
Business leaders and analysts expressed mixed views. Wendy Cutler of the Asia Society Policy Institute called the tariffs “few surprises,” noting their legal durability. Time will tell whether the third attempt to impose tariffs is the charm and this action stands up to legal challenges,
she said.
Trade Representative Jamieson Greer stating, 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,
and adding that the action will begin to correct what is both a human rights abuse and distortive trade practice
.
The immediate impact on consumers remains uncertain, as many duties mirror existing rates. However, the administration’s focus on overcapacity investigations and potential new tariffs looms large. For now, most partners have avoided retaliation, opting for negotiations instead. Trade Dominic LeBlanc said, reflecting a cautious approach amid escalating tensions.
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