US activates 10-12.5% forced-labor tariffs on 60 economies, replacing expiring global duties

Summary

A Section 301 presidential memorandum signed July 23, 2026 imposed import duties of 10% or 12.5% on goods from the United States' top 60 trading partners, taking effect at 12:01 am ET Friday. The action cites those countries' failure to prohibit, or adequately enforce bans on, goods made with forced labor. The affected list spans virtually all major US trade relationships: China, Japan, South Korea, Taiwan, Thailand, the European Union, and 54 other economies that together account for 99% of US imports. The new rates replace a prior tariff layer that expired at the same hour. Japan faces at least 12.5%, while the EU and Taiwan face at least 10%.

The split

US financial media (CNBC, NBC) frames the action as the administration rebuilding its tariff architecture after losing IEEPA-based authority in court, with Section 301's survival of prior legal challenges made the headline. Japan Times frames it as the US "rebuilding" tariff reach after legal setbacks and leads with Japan's 12.5% rate, higher than the EU's 10%. Taiwanese tech-industry press (Digitimes) focuses on the manufacturing supply-chain exposure of the key Asian electronics exporters, while Bangkok Post makes explicit what US-centric coverage left implicit: Thailand, a major manufacturing hub and bilateral US partner, is among the 60 hit. Korean and Nikkei Asia coverage treats the measure as a market event, tracking its implications for electronics and auto sectors. No non-English coverage from China or India is yet in the verified feed for this event.

By the numbers

• 60, trading partners covered by the July 24 order
• 99%, share of US imports by value covered
• 10% or 12.5%, the two rate tiers imposed
• 12:01 am ET July 24, effective time
• At least 12.5%, minimum rate for Japan
• At least 10%, minimum rate for the EU and Taiwan

Why it matters

Section 301 carries no statutory cap on rates and survived earlier court challenges that voided the administration's IEEPA-based authority. The new duties, stacked on existing bilateral deal floors, raise the effective cost of imports from allied economies, including Japan and South Korea, above levels negotiated in recent deals. Companies that frontloaded orders to beat earlier tariff rounds now face a new, potentially durable baseline hitting their remaining inventory.

What to watch

Whether the EU, Japan or South Korea file WTO challenges; how US courts read this application of Section 301 to allied economies; and whether bilateral agreements carve out specific sectors, particularly semiconductors from Taiwan and automobiles from Japan.