Trump Administration Proposes 10% to 12.5% Tariffs on 60 Trading Partners

According to foreign media reports, in June 2026, the Office of the U.S. Trade Representative (USTR) released a 98-page report detailing the findings of an investigation, proposing the imposition of varying rates of import tariffs on 60 trading partners. These tariffs are being pursued under Section 301 of the Trade Act of 1974, with the implicated economies accused of failing to effectively implement requirements prohibiting the import of goods produced with forced labor.

Sixteen economies, including Canada, Mexico, the European Union, Taiwan, and the United Kingdom, would face a 10% tariff. Another 44 economies, including China, Japan, India, South Korea, Singapore, and Switzerland, would face a 12.5% tariff. To mitigate the impact on domestic U.S. prices, the proposed tariffs would exempt categories such as aircraft parts, food, and rare earth minerals. Goods from Canada and Mexico covered by the U.S.-Mexico-Canada Agreement (USMCA) are also exempt.

However, the new tariffs are not yet in effect and must undergo a public comment process, with related hearings scheduled to begin on July 7.

The background for these tariffs is the judicial obstacles faced by several previous tariff policies of the Trump administration. In February 2026, the U.S. Supreme Court ruled that the global tariffs previously imposed by Trump under the International Emergency Economic Powers Act exceeded his authority, voiding the related rulings. Subsequently, the Trump administration introduced a 10% temporary global tariff, but this policy was ruled illegal by the U.S. Court of International Trade in May 2026. It is currently still being collected pending appeal and is set to expire on July 24.

Public data from the U.S. Treasury Department shows that U.S. tariff revenue peaked at $31 billion last October and fell back to $22 billion in both March and April of this year. The Trump administration had previously planned to use tariff revenue to fill the fiscal gap created by the large-scale tax cuts in 2025.

The USTR's announcement stated that major trading partners' failure to address the import of goods produced with forced labor has placed American workers at an unfair disadvantage in global competition. The Section 301 authority being used was previously employed during Trump's first term to impose tariffs on China and carries no restrictions on tariff levels or duration. The investigation is progressing at approximately twice the speed of a typical Section 301 investigation and is expected to be finalized before the temporary tariffs expire in July.

The allegations have drawn responses from multiple parties. China's Ministry of Foreign Affairs stated publicly that there is no so-called forced labor in China, opposes using this as a pretext for political manipulation, calls for resolving economic issues through dialogue, and stated that a trade war serves no one's interests. The European Union's public response stated that the accusations are groundless, that the EU has already enacted the world's strictest ban on goods produced with forced labor, and that the U.S. actions are an attempt to find a legal pretext for predetermined tariffs. The EU demanded that the U.S. comply with the tariff agreement reached in July of last year. Canada's public response stated that the country is about to introduce legislation on forced labor in supply chains and that its existing anti-forced labor legal framework is robust. Singapore's Ministry of Trade and Industry previously stated publicly that there is no evidence that Singapore's exports to the U.S. involve supply chains with forced labor. The UK government's public response stated that the country has addressed forced labor issues through legislation such as the Modern Slavery Act and that its existing preferential trade policies with the U.S. have not changed for now.

In addition to the forced labor investigation, the USTR is also conducting a Section 301 investigation into the issue of industrial overcapacity in 16 trading partners. On June 2, the U.S. also proposed imposing a 25% Section 301 tariff on Brazil, accusing it of unreasonable trade practices including lax anti-corruption enforcement and unfair tariffs.