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By Gabe Whisnant, Dan Gooding, and Alice Gibbs
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President Donald Trump's sweeping new global tariffs took effect Friday, hitting goods from 60 trading partners with duties of up to 12.5 percent and drawing immediate pushback from allies who say Washington's justification for the measures is flawed.
Governments from New Zealand and Australia to Brazil and the European Union disputed the administration's contention that they have failed to adequately combat forced labor, while Canada said it would continue negotiations with Washington.
The White House says the tariffs target countries that have failed to adequately prohibit or enforce bans on goods produced with forced labor, marking one of the largest trade actions of Trump's second term. The levies apply to economies accounting for roughly 99 percent of U.S. imports, according to the Office of the U.S. Trade Representative.
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Administration officials argue the move is intended to level the playing field for American workers by penalizing countries whose markets allow products linked to forced labor to enter international supply chains. U.S. Trade Representative Jamieson Greer said the U.S. has long enforced restrictions on forced-labor goods and that trading partners must do the same.
The move is expected to reignite debate over Trump's aggressive trade agenda ahead of the November midterm elections.
Augustine Lo, partner at international law firm Dorsey & Whitney who advises clients on U.S. customs and international trade law, said in comments shared with Newsweek that the decision would have ramifications for businesses and consumers across the U.S.
“It remains to be seen what effect this tariff action will have on the economy; how this tariff action will interact with any further forthcoming tariff actions by this administration; and any relief that may be had in the future, whether through further USTR proceedings or through bilateral trade negotiations with the affected trading partners," Lo said.
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New Attempt After Supreme Court Ruling
The action comes after the Supreme Court struck down Trump's earlier attempt to impose broad global tariffs under the International Emergency Economic Powers Act, ruling the law did not authorize such duties. In response, the administration temporarily shifted to 10 percent worldwide tariffs under Section 122 of the Trade Act of 1974, a provision that expires Friday after 150 days.
The new tariffs instead rely on Section 301 of the same law, a trade tool that allows the president to respond to foreign practices deemed unfair or harmful to U.S. commerce and one that has previously survived court scrutiny.
“President Trump recognizes that decades of moral suasion have not eradicated forced labor from global supply chains. 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,” USTR Ambassador Jamieson Greer said in a statement.
Administration officials say some countries received lower tariff rates after taking steps to strengthen forced-labor enforcement in recent weeks. Imports from countries that have adopted or committed to some form of forced-labor prohibition generally face a 10 percent tariff, while others face duties of 12.5 percent.
Certain products, including oil, gas, fertilizer and many goods qualifying for duty-free treatment under the U.S.-Mexico-Canada Agreement, are exempt.
“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 added. "I am encouraged by the trading partners who have moved quickly to adopt forced labor import prohibitions, and look forward to ensuring their effective enforcement.”
Allies and Trading Partners Push Back
Several U.S. allies and trading partners quickly rejected the administration's justification for the new tariffs, arguing their own laws already prohibit forced labor and that the measures are unwarranted.
New Zealand Prime Minister Christopher Luxon called the tariffs "extremely disappointing" and vowed to continue pressing Washington over the decision, while New Zealand officials disputed the findings of the U.S. investigation.
Canada struck a more measured tone. Trade Minister Dominic LeBlanc said the move was "not unexpected" and emphasized that Canada shares the U.S. goal of combating forced labor, while continuing discussions with Washington. Canada was placed in the lower 10 percent tariff tier and USMCA-compliant goods remain exempt.
The European Union also signaled concern. Reuters reported that EU foreign policy chief Kaja Kallas questioned the rationale behind the tariffs and said Brussels was seeking clarification from U.S. officials.
Brazil condemned the measures as "arbitrary" and "unjustified," with President Luiz Inácio Lula da Silva saying his government would continue negotiations but could pursue alternative export markets if necessary.
Australia likewise pushed back, with Trade Minister Don Farrell arguing the tariffs were "unjustified" and noting that Australia's anti-forced-labor and anti-modern-slavery measures are among the strongest in the world. Despite that, Australia was assigned the higher 12.5 percent tariff rate.
While governments from Ottawa to Wellington challenged the administration's reasoning, none of the affected countries had announced retaliatory measures as of Friday, with most instead indicating they would seek negotiations or clarification from Washington.
Which Countries Are Facing Trump's New Forced-Labor Tariffs?
10 percent tariff group:
- Argentina
- Bangladesh
- Cambodia
- Canada
- Ecuador
- El Salvador
- Guatemala
- Indonesia
- Malaysia
- Mexico
- Pakistan
- United Kingdom
10 percent or 12.5 percent tariff group:
- European Union
- Taiwan
- Japan
- Korea
- Switzerland
12.5% tariff group:
- Algeria
- Angola
- Australia
- Bahamas
- Bahrain
- Brazil
- Chile
- China
- Colombia
- Costa Rica
- Dominican Republic
- Egypt
- Guyana
- Honduras
- Hong Kong
- India
- Iraq
- Israel
- Jordan
- Kazakhstan
- Kuwait
- Libya
- Morocco
- New Zealand
- Nicaragua
- Nigeria
- Norway
- Oman
- Peru
- Philippines
- Qatar
- Russia
- Saudi Arabia
- Singapore
- South Africa
- South Korea
- Sri Lanka
- Thailand
- Trinidad and Tobago
- Türkiye
- United Arab Emirates
- Uruguay
- Venezuela
- Vietnam
...
How This Fits Into Trump's Broader Tariff Agenda
Since returning to office, Trump has employed tariffs on a range of grounds, including national security, immigration enforcement, fentanyl trafficking, reciprocal market access and, now, labor and human rights concerns.
The administration has argued that foreign governments' failure to prevent goods produced with forced labor from entering their markets creates an unfair competitive advantage and burdens U.S. commerce.
The legal mechanism used here is Section 301 of the Trade Act of 1974, the same authority Trump relied on during his first term to impose tariffs on Chinese imports worth hundreds of billions of dollars.
This latest move also reflects the White House's increasingly expansive use of trade policy. Trump has sought to leverage tariffs as a negotiating tool in areas that extend beyond traditional trade disputes, including efforts to pressure trading partners on border security, narcotics enforcement, industrial policy and supply-chain practices.
Supporters of the policy argue that tariffs can encourage governments to tighten enforcement against forced labor and reduce demand for goods linked to abusive labor practices. Critics, however, have warned that broad tariffs can raise costs for importers and consumers, disrupt supply chains and strain relations with trading partners.
The administration has maintained that the measures are necessary to address what it describes as an unfair trade practice that distorts global competition.
Update, 07/24/2026, 8:22 a.m. ET: This article was updated with additional information.
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