The United States has rolled out a fresh round of tariffs on 60 trading partners, marking one of the most sweeping trade actions of President Donald Trump's second term. The new duties, ranging from 10% to 12.5%, took effect at 12:01 a.m. Eastern Time on Friday, July 24, 2026, replacing a temporary global tariff that expired at the same moment.

This report breaks down what changed, who is affected, and what it could mean for businesses and consumers in the months ahead.

What Happened

The Office of the U.S. Trade Representative announced the new tariffs on Thursday, citing findings that 60 economies failed to adequately enforce bans on goods made with forced labor. U.S. Trade Representative Jamieson Greer said the United States has enforced its own forced labor import ban for nearly a century and expects trading partners to hold themselves to a similar standard.

The timing was not accidental. The new duties replace a temporary 10% global tariff that Trump imposed after the Supreme Court struck down his earlier "reciprocal" tariffs in February. That ruling found the administration had overstepped its authority under the emergency powers law it had originally relied on. Rather than abandon the tariff strategy, the administration pivoted to Section 301 of the Trade Act of 1974, a statute that allows duties in response to unfair foreign trade practices.

Why Section 301 Matters

Section 301 gives the administration a different legal foundation than the one the Supreme Court rejected. Unlike the earlier emergency powers approach, this route requires a formal investigation into specific trade practices, in this case, the enforcement of forced labor import bans. Trade lawyers say this legal grounding could make the new tariffs more durable against court challenges than the previous version.

Who Is Affected

The tariffs cover roughly 99.4% of all U.S. imports, according to the USTR. That scale touches nearly every major trading relationship the country has.

Countries facing the lower 10% rate include:

  • Canada and Mexico
  • The United Kingdom
  • India
  • Argentina and Ecuador
  • Bangladesh, Indonesia, Malaysia, and Pakistan
  • Guatemala, Honduras, and El Salvador
  • Jordan, Sri Lanka, and Trinidad and Tobago
  • Cambodia

Countries and blocs facing the higher 12.5% rate include:

  • China
  • The European Union
  • Japan
  • Taiwan
  • South Korea

Officials said some exemptions apply. Goods already covered by existing sector-specific tariffs, such as steel and aluminum, will not face an additional layer of duties. Goods qualifying under the U.S.-Mexico-Canada trade agreement are also exempt from the new levy.

A Parallel Investigation Is Already Underway

Separately, the administration is investigating 16 other economies over concerns about excess industrial capacity. Trade watchers expect this probe could lead to another set of tariffs later this year, potentially with different rates depending on the outcome.

How Trading Partners Are Responding

Reaction from affected governments has been swift and largely critical. The European Union, one of the largest economies hit with the higher 12.5% rate, has firmly disputed the forced labor enforcement allegations underpinning the new duties. Several economists and trade analysts have also questioned the legal rationale, suggesting the forced labor justification functions as a workaround for tariffs that were previously struck down by the courts.

Trade policy experts note that the approach signals a longer-term shift. By using a statute focused on unfair trade practices rather than emergency powers, the administration appears to be building a tariff structure designed to withstand legal scrutiny and potentially remain in place through the rest of Trump's term.

What It Means for Businesses and Consumers

For companies that import goods from the affected countries, the practical impact will likely show up in cost structures within weeks. Importers typically pass tariff costs on to consumers through higher prices, and this round arrives at a time when the U.S. is already dealing with inflation pressure tied to other global disruptions.

Businesses with exposure to affected supply chains should consider a few immediate steps:

  • Reviewing which specific product lines fall under the 10% versus 12.5% rate.
  • Checking whether goods qualify for USMCA or existing sector-specific exemptions.
  • Communicating with suppliers about cost-sharing or pricing adjustments.
  • Building in a buffer for goods currently in transit, which are exempt until 12:01 a.m. Eastern Time on July 28.

Retailers and manufacturers reliant on apparel, electronics components, and agricultural imports from Southeast Asia and South Asia are likely to feel the most immediate pressure, given the concentration of forced labor enforcement concerns in those regions.

The Bigger Picture

This move fits a broader pattern that has defined trade policy since the Supreme Court ruling in February. Rather than retreating after losing legal ground, the administration has worked to rebuild a near-global tariff wall using alternative legal tools. Analysts at organizations tracking global trade policy describe this as a signal that protectionist trade measures are likely to persist as a defining feature of the current economic environment, regardless of court rulings on individual tariff actions.

For now, the immediate question for businesses is not whether tariffs will remain part of the trade landscape, but how to plan around a structure that appears built for durability rather than as a temporary measure.