The United States is once again modifying its tariff system. With the expiration of the temporary 10% tariff regime, the Trump administration is imposing tariffs based on Section 301 of the Trade Act of 1974 against 60 economies, citing their failure to adopt or enforce effective bans on the import of goods produced using forced labor.
The new scheme has two main tiers. The rate is set at 10% for partners that have already introduced a ban, adopted partial measures, or made commitments to Washington. It rises to 12,5% for economies that, according to the US administration, have not yet established an adequate system.
For the European Union and Taiwan, the mechanism functions as an overall cap: the Section 301 tariff is added to the standard MFN rate only up to 10%. If the tariff already applied is equal to or higher than this threshold, no additional levy is introduced. For Japan, South Korea, and Switzerland, the overall limit is set at 12,5%.
Canada, Mexico, the United Kingdom, and India are among the economies subject to the 10% rate. For China, Vietnam, and other countries not included in the preferential categories, the 12,5% rate applies, to which additional tariff measures already provided for by other provisions may be added.
“The United States has banned the import of products made with forced labor for nearly a century,” said U.S. Trade Representative Jamieson Greer, arguing that international partners should adopt and enforce similar standards.
Certain product categories remain excluded, including goods already subject to sectoral tariffs and a number of raw materials or goods considered essential to the American economy. The White House justified the exemptions by the need to avoid shortages, excessive cost increases, or disruptions in supply chains.
The measure opens a new phase in trade relations between Washington and its major international partners. For European companies, the overall rate remains limited to 10%, but the customs framework becomes more complex, especially for products already subject to standard tariffs or sector-specific measures.
At the same time, the United States is investigating the overproduction policies of several partners, including the European Union, China, Mexico, and India. The risk is that further interventions could be added to the current pattern, further increasing uncertainty for exporters and international supply chains.
