US imposes new tariffs on 60 countries

• Tariffs range from 10% to 12.5% and target countries representing the majority of US imports, with the UK facing a 10% levy and Brazil facing 12.5%
• The measures are imposed under Section 301 of the Trade Act of 1974 and replace previous tariffs that were declared illegal by the Supreme Court
• Exemptions will be granted for materials that would face shortages or cannot be produced domestically in sufficient quantity at reasonable prices

Summary

The Trump administration has imposed new tariffs of 10-12.5% on 60 countries, effective July 24, 2026, citing their failure to prevent forced labor in imports. The affected nations include major US trading partners such as the UK, Canada, China, Mexico, and the EU, which collectively represent the majority of US imports.

These levies replace previous tariffs that were ruled illegal by the Supreme Court. Following that ruling, the US has reportedly experienced significant trade revenue decline—dropping from £5bn the previous year to lower levels beginning in October 2025.

US Trade Representative Jamieson Greer justified the measures under Section 301 of the Trade Act of 1974, describing them as addressing "human rights abuse and distortive trade practice." The USTR investigation claimed affected economies failed to "impose and effectively enforce" forced labor import prohibitions.

Key Details:

• UK faces 10% tariff; Brazil faces 12.5%
• Exemptions apply for material shortages or products unavailable domestically at reasonable prices
• Certain UK and other country products may be exempt to encourage labor prohibition compliance

International Response:

Brazil called the tariffs "arbitrary and unjustified," threatening retaliation. Australia's trade minister deemed them "inconsistent with our free trade agreement." Canadian Prime Minister Mark Carney warned "everything's on the table" if no agreement is reached before the August 19 deadline.

The tariffs arrive days after additional measures against unnamed countries for "continued discrimination," threatening to reignite trade wars from Trump's previous presidency. The administration maintains these measures will "improve the welfare of workers everywhere."