As Expected, New Tariffs Are Imposed Against Imports From 60 Countries, Creating An Ever-More Complicated Landscape For Importers

After conducting an investigation of forced labor practices under Section 301 of the Trade Act of 1974, the U.S. Trade Representative (“USTR”) announced on July 23, 2026, the imposition of new tariffs of either 10 or 12.5% on 60 countries. The new tariffs, which were expected (see previous alert), will go into effect as a previous wave of temporary tariffs imposed under section 122 of the same trade act expired at 12:01 am July 24. The section 122 tariffs, which went into effect in February 2026, remain subject to a legal challenge (see previous alert) and may need to be refunded if invalidated in a pending appeal before the Court of Appeals for the Federal Circuit.

The new 10% tariffs will apply to countries that the U.S. determined have taken some steps to address forced labor in products exported to the U.S., while trading partners that have failed to adopt a forced labor import prohibition will be subject to a 12.5 % tariff.

• The 10% tariff rate will apply to: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, the United Kingdom, and Trinidad and Tobago.
   
• A 10% or 12.5 % tariff rate, net of the applicable Most-Favored-Nation (MFN) rate, will apply to certain products of the European Union, Taiwan, Japan, Korea, and Switzerland that are not otherwise exempted, as explained using a somewhat complicated formula in the accompanying Federal Register Notice.
• The remaining countries will be subject to a 12.5% tariff rate: Algeria; Angola; Australia; the Bahamas; Bahrain; Brazil; Chile; People’s Republic of China, Colombia; Costa Rica; Dominican Republic; Egypt; Guyana; Hong Kong; Iraq; Israel; Kazakhstan; Kuwait; Libya; Morocco; New Zealand; Nicaragua; Nigeria; Norway; Oman; Peru; the Philippines; Qatar; Russia; Saudi Arabia; Singapore; South Africa; South Korea; Thailand; Türkiye; United Arab Emirates; Uruguay; Venezuela; and Vietnam.

Exceptions to the new tariffs are set forth in full in the Federal Register notice, but are summarized as follows in the USTR Fact Sheet:

• Informational materials, donations, and accompanied baggage;
• All articles and parts of articles subject to section 232 tariffs; and
• Certain products which include (i) raw materials that if subject to the proposed additional tariffs could lead to the unavailability of domestic supply; (ii) products that could cause economy-wide disruptions if subject to the proposed additional tariffs; (iii) certain products that cannot be grown or produced in sufficient quantities in the United States or obtained from other sources; (iv) products that if exempted from these tariffs would encourage economies to enact and effectively enforce a forced labor import prohibition; and (v) articles for which additional tariffs may not contribute substantially to the elimination of the acts, policies, and practices determined to be actionable in the investigation.

As is clear from the above, specifics of the new tariffs are complicated, adding to an already complex welter of tariffs imposed on various countries under an array of other U.S. trade laws. Earlier this month, the U.S. imposed a 25% Section 301 tariff on Brazil and a 50% tariff on Canada under section 338 of the Tariff Act of 1930, and other international trade law investigations under Section 301 and Section 232 of the Trade Expansion Act of 1962 are continuing. The ever-changing tariff landscape continues to create compliance upheaval for U.S. importers.