U.S. Replaces Expiring Global Tariff With Duties on 60 Economies
The United States replaced an expiring temporary global tariff with new duties on imports from 60 trading partners on July 24, tying the action to what the administration says are inadequate efforts to prevent goods made with forced labor from entering global commerce.
The Office of the U.S. Trade Representative imposed additional duties of 10% or 12.5% at 12:01 a.m. EDT. USTR says the action covers economies representing 99.4% of U.S. imports, but the final schedule does not apply the same charge automatically to every product or shipment.
What changed on July 24
The new duties took effect at the same time a separate temporary 10% global tariff imposed under Section 122 of the Trade Act of 1974 expired. Because the measures overlapped closely, the immediate increase in the effective tariff rate may be limited for some goods.
Reuters reported that qualifying goods already in transit received a limited transition period through 12:01 a.m. EDT on July 28. Importers still must determine which tariff applies based on the product, country of origin, entry timing and any existing trade agreement or sector-specific measure.
USTR says economies that have adopted, committed to adopt or partially implemented forced-labor import prohibitions generally receive the 10% rate. Other covered economies generally face 12.5%. The country-by-country treatment is controlled by the final legal schedule, not by a universal rule that applies identically to all 60 economies.
Why the administration used Section 301
The duties rely on Section 301 of the Trade Act of 1974. That authority allows USTR to respond to foreign acts, policies or practices it determines are unreasonable and burden or restrict U.S. commerce.
In a June notice, USTR said it found that 54 economies had failed to impose and effectively enforce a forced-labor import ban and that six others had failed to enforce one effectively. The June Federal Register notice documented the investigations, findings and proposed action. The July 24 measure was the final implementation step.
The administration says the goal is to pressure trading partners to adopt and enforce import prohibitions similar to the U.S. system. A separate Associated Press analysis reported that affected governments and outside trade experts disputed the findings, questioned the evidentiary basis and criticized the use of Section 301 to impose broad country-level duties without new congressional legislation.
Which goods are exempt
The final action excludes several categories, including informational materials, donations and accompanied baggage. It also excludes articles and parts already subject to Section 232 tariffs.
Other exemptions cover specified products where additional duties could contribute to domestic supply shortages, cause broader economic disruption, involve limited alternative supply or have little expected effect on the forced-labor practices identified by USTR. The product-level list is contained in the Federal Register schedule. Importers should not assume that a product is covered or exempt based only on its industry.
Classification, origin, Section 232 treatment, trade-agreement eligibility and the applicable annex all matter. Reuters reported that the schedule includes additional product-specific exemptions, but the final legal text controls.
How the duties interact with other tariffs
The Section 301 duty is generally an additional customs charge, rather than a replacement for ordinary tariff rates. The combined amount can depend on the product classification, an existing sectoral tariff, a trade agreement and any country-specific cap or special mechanism in the final schedule.
Reuters reported that U.S. officials had said the new duties would not push countries with negotiated tariff caps above those limits. Importers should verify any such treatment against the final legal schedule and applicable Customs and Border Protection guidance, including rules affecting USMCA-qualifying goods.
What businesses and consumers should watch
Importers generally pay customs duties when goods enter the United States. The eventual effect on shoppers depends on whether suppliers, importers and retailers absorb the cost, pass it through, change suppliers or draw down inventory purchased before the new duties took effect.
Consumers may see higher prices or fewer choices over time, but the immediate effect will vary. The Associated Press reported that businesses prepared by moving shipments forward and that replacing the expiring 10% levy could limit the initial change in effective rates for some products.
Businesses should review the final annex, tariff classifications and origin records with customs professionals. They should also monitor guidance from U.S. Customs and Border Protection, country-level changes, exclusion or modification procedures and possible court challenges. AP reported that a lawsuit had already been filed in the U.S. Court of International Trade.
Why the policy is contested
The administration presents the duties as a way to address both forced labor and what it considers a trade distortion. Affected governments, including the European Union and others, rejected or questioned the U.S. conclusions. Critics also argue that USTR disclosed limited detail about how it evaluated enforcement across economies with different laws and trade systems.
The dispute is separate from the Supreme Court’s February 2026 ruling against the broader tariffs imposed under the International Emergency Economic Powers Act. The new duties use Section 301, a different statutory authority, although their breadth is likely to draw continued legal and diplomatic scrutiny.
What happens next
The key next steps are Customs and Border Protection implementation, country-by-country changes, possible exclusion or modification requests, diplomatic responses and litigation. USTR’s stated objective is for trading partners to adopt and demonstrate effective forced-labor import prohibitions, which could affect their treatment under the schedule.
For importers, the practical takeaway is that the duties are already in effect, but the amount owed depends on the imported product, country of origin, entry timing and existing tariff treatment. Consumers should expect uneven effects rather than an automatic 10% or 12.5% increase on every item connected to the 60 economies.
Sources
- USTR fact sheet on the final Section 301 action
- Federal Register notice on the Section 301 investigations
- Reuters report on the July 24 tariff change
- Associated Press explainer on the latest tariffs
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