Canada, India, China and European Union members are among the economies affected by duties linked to forced-labour enforcement
WASHINGTON, July 24, 2026 — The United States has imposed new import tariffs on goods from 60 trading partners, alleging that the affected economies have not adequately prevented products associated with forced labour from entering international supply chains.
The new duties range between 10% and 12.5%. A 10% tariff applies to goods from countries including Canada, India, Britain, Mexico, Pakistan, Bangladesh and several others. China, Vietnam and a number of additional trading partners face a 12.5% rate, while arrangements involving the European Union, Japan, South Korea, Taiwan and Switzerland are calculated alongside existing tariff rates.
The measures took effect as a temporary global U.S. tariff expired. They were imposed under Section 301 of the Trade Act of 1974, which gives Washington authority to respond to trade practices it considers unfair.
The duties reportedly cover 99.4% of American imports, but several major categories are exempt. These include oil and gas, fertilizer, certain food products, aircraft and parts, critical minerals and goods already covered by national-security tariffs, such as automobiles, steel, aluminum and copper.
Several governments rejected Washington’s forced-labour justification. China opposed what it described as unilateral tariffs, while Australia, Brazil and Norway called the measures unjustified. Canada said it would continue discussions with American officials.
For Canadian businesses, the headline 10% rate does not mean that every export will face an additional 10% charge because numerous products are excluded or already covered by separate trade measures. Exporters will need to review the tariff classification and applicable exemptions for individual products.
Economists warn that widespread tariffs can increase costs for importers and consumers while creating uncertainty for manufacturers with cross-border supply chains.
