Trump Imposes 10-12.5% Tariffs on 60 Economies Over Forced Labor

The Trump administration has implemented a sweeping new tariff regime imposing duties of 10% to 12.5% on imports from approximately 60 trading partners, effective July 24, 2025. The levies are justified under Section 301 of the Trade Act of 1974 and follow an investigation into alleged failures by trading partners to prevent forced labor in their supply chains. Countries with stronger forced labor protections, including Mexico, the U.K., Canada, and India, face 10% tariffs, while others including Japan, Switzerland, and South Korea face up to 12.5% duties, with the EU capped at 10% to comply with existing bilateral trade agreements.

This move represents the Trump administration's broadest tariff action since earlier duties were struck down by the Supreme Court, and it effectively eliminates any gap between the expired 10% global import tax (which expired July 24) and these new forced-labor-based duties. Exemptions apply to fuel, foods, fertilizers, automobiles, metals, pharmaceuticals, and items covered by the North American trade agreement, but importers can expect significant cost pressures and administrative complexity as the administration reviews thousands of exemption requests. For supply chain professionals, this creates immediate operational challenges: sourcing strategies must be reassessed, landed costs will increase substantially for affected imports, and compliance requirements around forced labor documentation will intensify.

The uncertainty surrounding future tariffs, combined with pending investigations into excess manufacturing capacity and ongoing Section 338 negotiations with Canada, signals that this is likely not the final major tariff action in 2025.