According to Reuters, the United States has introduced a new tariff policy under Section 301 of the Trade Act of 1974, replacing an earlier global tariff framework that had been invalidated by the US Supreme Court earlier this year.

Under the new policy, imports from most affected countries will face an additional 10% tariff, while products from countries deemed to have weaker or no effective forced labor restrictions will be subject to a 12.5% tariff.

The Trump administration said the measures are intended to strengthen efforts against forced labor in global supply chains and protect American workers. However, several US trading partners have criticized the move, calling it unfair and unjustified.

The new duties officially took effect at 12:01 a.m. Friday, although goods already in transit have been granted a grace period until July 28.

US Trade Representative Jamieson Greer said the United States has enforced laws banning imports made with forced labor for nearly a century and believes its trading partners should adopt similar standards.

‘Today s action is a step toward addressing human rights abuses and unfair trade practices while improving conditions for workers around the world,’ Greer said.

Pakistan Among Countries Facing 10% Tariff

Countries subject to the 10% tariff include Pakistan, Argentina, Bangladesh, Canada, India, Indonesia, Malaysia, Mexico, Sri Lanka, and the United Kingdom, among others.

For the European Union, Japan, South Korea, Taiwan, and Switzerland, tariff rates have been structured so that, when combined with existing import duties, the total effective tariff reaches approximately 10% or 12.5%.

Meanwhile, 38 other countries, including China and Vietnam, will face a 12.5% tariff.

The United States has accused China of links to forced labor involving Uyghur Muslims in Xinjiang, an allegation that Beijing continues to deny.

US officials also said tariffs on Chinese goods could return to 20% under a trade understanding reached between Washington and Beijing in November 2025, but are not expected to increase beyond that level.

Global Reactions

Several governments responded quickly to the new US tariff policy.

European Union foreign policy chief Kaja Kallas said the bloc considers the tariffs surprising and rejected the justification offered by Washington, arguing that European labor protections—including paid leave and workplace standards are stronger than those in many countries.

Australia and Brazil also described the tariffs as unjustified and called for their removal, while Norway questioned the basis for the measures.

Canadian Minister for US Trade Dominic LeBlanc said Canada would continue constructive discussions with Washington to resolve the issue and strengthen bilateral trade.

Former Trump trade adviser Kelly Ann Shaw said the policy largely aligns with previous expectations but includes exemptions for approximately 471 products, limiting its overall economic impact.

Products Exempt From the New Tariffs

According to US officials, the following products are exempt from the new duties:

Oil and natural gas

Fertilizers

Selected food products

Aircraft and aircraft parts

Critical minerals

Goods already subject to national security tariffs

Many products covered under the US-Mexico-Canada Agreement (USMCA)

The exemptions are intended to avoid disrupting essential supply chains and strategic industries.