The Trump administration, on July 25, 2026, acted to reinstate an almost universal tariff floor on U.S. imports, substituting its temporary 10% global tariff with a new Section 301 tariff regime that covers 60 economies accounting for 99.4% of the U.S. imports.
It is well to be noted that the new duties were announced on July 24, 2026, by the Office of the U.S. Trade Representative and came into effect at 12:01 a.m. EDT on July 25, 2026.
Interestingly, the new duties will impose new import tariffs between 10% and 12.5% on most of the major U.S. trading partners, such as China, Mexico, Canada, the EU, and India, as well as Vietnam, Reuters reports. It follows directly on from the expiry of the temporary 10% tariff from President Donald Trump, which was in place for 150 days.
Apparently, the tariffs are based on Section 301 investigations that were initiated March 12 to establish whether 60 economies sufficiently impose or enforce bans on imports made with forced labor.
Jamieson Greer, the U.S. Trade Representative, concluded in June 2026 that the stances taken by each economy were unjust and burdened U.S. commerce. The administration opted to implement new tariifs under the Trade Act of 1974 as opposed to using the emergency powers the U.S. Supreme Court ruled down earlier in 2026.
According to Greer, “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. 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.”
Tariffs go on to cover almost all U.S. imports
The structure of the new tariffs will cover trading partners that account for 99.4% of all U.S. imports, the White House said.
Tariff of 10% on countries including:
- Mexico
- Canada
- India
- Indonesian
- Malaysia
- Pakistan
- Bangladesh
- Cambodia”
- Guatemala
- Salvador
Honduras.
- Jordan.
- Sri Lanka
- Argentina
- Trinidad & Tobago
- United Kingdom
- Ecuador
The European Union and Taiwan will have tariffs fixed so that their combined most-favored nation – MFN tariff and the new Section 301 duty will be 10%, whereas Japan and South Korea, as well as Switzerland, will be subject to combined tariff levels set at a maximum at 12.5%.
The remaining 38 economies, which include China, Australia, Brazil, Thailand, Vietnam, South Africa, and other nations, are likely to face a 12.5% tariff.
Many products exempted
The administration granted hundreds of product waivers to prevent disruption for U.S. manufacturers and consumers.
Exemptions are
- Petroleum and natural gas
- Animal manure
- Certain food items
- Raw materials inaccessible from local suppliers
- Products with the potential to cause economy-wide disruptions
- Goods not manufactured in adequate quantities in the US
The White House also instructed USTR to set up tariff rate quotas for some apparel and textile imports from Bangladesh, Cambodia, Indonesia, and Malaysia later in 2026 to promote greater consumption of U.S. cotton and textile inputs.
Goods that were already in transit when the import tariffs between 10% and 12.5% took effect are not subject to duty until July 28, as are products regulated by other trade authorities, such as numerous products deemed eligible under the U.S.-Mexico-Canada Agreement – USMCA.
Trade partners retaliate
The administration’s justification for the tariffs was immediately attacked by a number of trading partners, Reuters reported.
China denounced it as yet another unilateral trade action, while Australia and Brazil, along with Norway, said the tariffs were not based on law.
The European Union said the new duties were still below tariff limits agreed in its recent trade deal with Washington, whereas Britain said its bilateral trade deal leaves major exports like whisky better off than in the past. Canada stated that it would continue talking to U.S. officials about the issue.
