Washington Imposes Fresh Tariff Round on 60 Nations Under Labor Rules

A New Tariff Mechanism Takes Hold

Washington has activated tariff measures covering 60 trading partners, with rates set at either 10 or 12.5 percent depending on each economy's labor enforcement framework. The duties became effective Friday, replacing a broader 10 percent levy that reached its 150-day expiration after the Supreme Court dismantled several of the administration's earlier tariff programs in February.

US Trade Representative Jamieson Greer framed the move as an enforcement push. "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," he said Thursday. Greer noted that the economies covered account for the bulk of American trade flows.

The tariff structure splits countries into two tiers. Economies that maintain or have pledged to introduce forced labor import bans face the 10 percent rate. That group includes Canada, the European Union, India and the United Kingdom. China, Japan, South Korea and several dozen others fall into the 12.5 percent bracket. The EU, Taiwan, Japan, South Korea and Switzerland receive partial exemptions under existing bilateral agreements with Washington.

Steel and aluminum already subject to sector tariffs remain unaffected. Energy products, fertilizers and goods covered by the US-Mexico-Canada trade agreement are also carved out, a US official confirmed.

Legal Footing and Political Calculus

The White House pursued a months-long investigation before announcing the tariffs in June, a process intended to build a stronger legal foundation than the sweeping duties struck down earlier this year. Officials turned to Section 301 of the Trade Act of 1974, a statute that grants the executive branch discretion to respond to unfair trade practices.

Greta Peisch, a former general counsel at the Office of the US Trade Representative now with Wiley Rein, said the approach serves dual purposes. It maintains pressure on trading partners while creating an incentive for compliance with existing agreements. The investigative groundwork also makes the tariffs more defensible in court, she added.

"This makes it much more likely that they stay for the duration of Trump's term," said Josh Lipsky of the Atlantic Council, who views the measures as a signal that the world's largest economy is shifting toward a more protectionist stance. He noted that reviving tariffs also generates revenue for the federal government.

Ryan Majerus, a former US trade official now at King & Spalding, said Section 301 offers officials room to adjust tariffs as circumstances change. Once duties are in place, the administration can modify them based on new developments, he explained.

Parallel Tracks and Regional Friction

The tariff announcement arrives alongside separate investigations into 16 economies over industrial overcapacity, probes that could yield additional levies with varying rates. Experts warn that this layered approach allows Washington to maintain leverage across multiple negotiating fronts.

Earlier this week, the White House imposed 50 percent tariffs on a range of Canadian goods, citing what it termed discriminatory treatment of American alcohol, automotive and dairy exports. Those duties, set to take effect in a month, rely on a legal provision not previously tested in court. Last week, a 25 percent tariff on Brazilian goods took effect after Washington accused Brasília of unfair trade practices.

Lipsky said the Canadian tariffs demonstrate that the administration retains multiple tools for deploying levies quickly, a dynamic that keeps trade agreements "fragile." The EU, which signed a pact with Washington, said it expects the US to honor commitments spelled out in their joint statement.

Asia in the Crosshairs

Asian economies feature prominently in both tariff tiers. China and several Southeast Asian manufacturing hubs fall into the higher 12.5 percent category, a reflection of Washington's assessment that these jurisdictions lack adequate forced labor import controls. Japan and South Korea, despite the higher baseline rate, benefit from partial relief under prior agreements.

India, a growing manufacturing destination for multinationals seeking to diversify supply chains away from China, lands in the lower tier due to its existing forced labor prohibition framework. The distinction could influence investment flows in the region, as companies weigh tariff exposure against production costs and market access.

Taiwan's semiconductor industry, already navigating US export controls and geopolitical tension, receives some relief through its trade pact with Washington. The island's position as a critical node in global chip supply chains has made it a focal point in US-China tech competition, and tariff treatment adds another variable to corporate location decisions.

Trade lawyers anticipate that the administration will use the tariff framework as a bargaining chip in bilateral negotiations. The threat of moving an economy from the 10 percent tier to the 12.5 percent bracket, or imposing additional duties under the industrial capacity investigations, gives Washington ongoing leverage.

What Comes Next

The latest tariffs mark a return to the trade posture that defined the administration's first term, when steel, aluminum and a range of Chinese goods faced steep levies. The Supreme Court's February ruling forced a tactical shift, but the new measures suggest the White House has found a path to sustain its protectionist agenda through the remainder of Trump's term.

Businesses with Asia-Pacific supply chains now face a more complex tariff landscape, with rates varying by country and product category. Companies that consolidated production in single locations to achieve scale may need to reassess, particularly if Washington proceeds with additional duties stemming from its industrial capacity reviews.

For Asian exporters, the immediate question is whether the tariff structure will remain static or serve as a baseline for further escalation. The administration's willingness to deploy new tariffs on Canada and Brazil within days of each other indicates that trade policy will remain a dynamic, and unpredictable, front.