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New US Tariffs on Over 80 Countries Take Effect

Created at 27 Jul · 6:06 PM1 source↑ Market-relevant
IN SHORT

The Trump administration has implemented new tariffs, ranging from 10% to 12.5%, on goods from over 80 countries. These duties are reportedly tied to the enforcement of bans on imports produced with forced labor.

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Key Numbers

80+countries affected by new tariffs
10%tariff rate for 17 economies with commitments
10% to 12.5%tariff rates for other countries
1974year of Trade Act Section 301
December 2027EU ban on forced labor goods effective date

Who's Involved

Trump administration
imposed new tariffs on imported goods
Donald Trump
President who issued the tariffs
Office of the U.S. Trade Representative (USTR)
announced the new tariffs
Jamieson Greer
U.S. Trade Representative
Peter Harrell
visiting scholar at Georgetown Law School and former Biden administration official
Sen. Ron Wyden
D-Ore., critical of the tariffs
New US Tariffs on Over 80 Countries Take Effect

↳ Why This Matters

These new tariffs represent a significant move by the administration to reshape global trade and protect domestic industries, potentially impacting supply chains and consumer costs across numerous countries.

Key facts

  • New tariffs ranging from 10% to 12.5% have been imposed on goods from over 80 countries.
  • The duties are intended to address the alleged failure of countries to effectively ban imports produced with forced labor.
  • These tariffs replace a previous 10% global duty that expired.
  • The measures are being implemented under Section 301 of the Trade Act of 1974.
  • Certain goods, including oil and gas, and those covered by the USMCA, are exempted.

The Trump administration has implemented new tariffs on goods from over 80 countries, with rates ranging from 10% to 12.5%. These duties, which took effect immediately, replace a global 10% tariff that had expired. The administration stated the tariffs are aimed at countries that have failed to effectively ban and enforce prohibitions on imports produced with forced labor, citing Section 301 of the Trade Act of 1974.

While some countries, such as Canada and the European Union, already have measures against forced labor imports, U.S. officials argue these are not sufficiently enforced. The EU's ban is scheduled to take effect in December 2027. The U.S. itself has long-standing prohibitions on goods made with slave labor. Some critics, however, suggest that the forced labor issue is being used as a pretext by the administration to reimpose tariffs that have faced legal challenges, particularly after the Supreme Court struck down previous broad import taxes.

Exemptions from the new tariffs include oil and gas, certain national resources, and goods already covered under the United States-Mexico-Canada Agreement or national security tariffs on items like cars and steel. The Office of the U.S. Trade Representative (USTR) initiated investigations into countries' forced-labor import policies, involving public hearings and comments, with the results released in June.

Frequently asked questions

The tariffs are issued under Section 301 of the Trade Act of 1974, citing the alleged failure of foreign countries to effectively ban and enforce prohibitions on imports produced with forced labor.

Over 80 countries are affected, including Canada, Mexico, the European Union (27 countries), China, Japan, South Korea, and the United Kingdom, among others.

Rates range from 10% to 12.5%. A 10% tariff applies to 17 economies that have committed to enforcing forced labor import prohibitions, while others face 12.5%.

Yes, oil and gas, certain national resources, and goods covered under the United States-Mexico-Canada Agreement or existing national security tariffs are exempted.

What Happens Next

01More tariffs are likely to be proposed in the coming weeks under Section 301.
02The European Union's ban on products made with forced labor is set to take effect in December 2027.

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Cadence

How It Developed

The Trump administration imposed new tariffs on goods from over 80 countries.
The tariffs range from 10% to 12.5% and took effect immediately.
These new duties replace a global 10% tariff that expired.
The administration cited the failure of foreign countries to effectively enforce bans on goods made with forced labor.
The tariffs were issued under Section 301 of the Trade Act of 1974.
Some countries, including Canada and the European Union, already have bans on forced labor imports, with the EU's set to take effect in December 2027.
Critics argue the forced labor issue is being used as a pretext to reimpose tariffs.

Sources

T1
New U.S. Tariffs Aimed at Over 80 Countries Go Into EffectThe New York Times
T2
Trump finalizes new tariffs on dozens of countries - POLITICOpolitico.com
T2
New US tariffs aimed at over 80 countries go into effectomanobserver.om
T2
Trump's New Tariffs on Over 80 Countries, Explained - TIMEtime.com

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