US Trade Representative Jamieson Greer announced new tariffs under Section 301 of the Trade Act of 1974 early Thursday morning, targeting more than 60 countries. These tariffs took effect at 12:01 a.m. Eastern Time on July 24, 2026, replacing a temporary 10% duty that had just expired.
The updated tariffs are split into two tiers based on how each country handles imports linked to forced labor. Seventeen nations, including Canada, Mexico, India, and the United Kingdom, pay a 10% tariff. Meanwhile, 38 others face a higher 12.5% rate. Brazil and China are subject to additional layered duties, increasing their overall tax burden.
Washington justifies this move by accusing several countries of failing to block products made with forced labor from entering global markets. This action follows a February setback for the Trump administration when the US Supreme Court ruled that only Congress, not the president, can set peacetime tariffs. In response, the administration initially implemented a short-term 10% tariff under a different law, which expired recently.
The new structure aims to create a more sustainable, longer-term tariff framework. the European Union and Taiwan qualify for the 10% rate, but their tariffs apply after deducting their standard most-favored-nation duties, so the impact is less severe compared to most other countries. The EU also received exemptions on certain products, such as diamonds, cork, generic medicines, active chemicals, and aircraft parts.
A European Commission spokesperson cautiously welcomed the tariff plan, noting it aligns with commitments made in a trade agreement signed at Trump’s Turnberry estate in Scotland. However, affected countries have voiced strong opposition. The tariffs are expected to strain diplomatic relations as well as global trade flows.
Investors reacted swiftly to the news. The US stock market showed a modest dip in the opening hours, with trade-sensitive sectors experiencing the largest declines.
