According to South China Morning Post report on July 24th, just hours before a temporary 10% comprehensive tariff was due to expire, the United States announced on Thursday evening that it would impose a new round of tariffs on 60 countries and regions, including China, Japan, South Korea, India, and EU member states.
The tariff rates range between 10% and 12.5%, and this is the result of a U.S. investigation into forced labor under Section 301 of the Trade Act of 1974. Washington argues that existing measures fail to prevent products from forced labor from entering the supply chain.
American Trade Representative Jamieson Greer stated in his statement, "The actions taken today will begin to correct practices that violate human rights and distort trade, thereby improving the welfare of workers around the world."
Reports indicate that China will face a customs duty rate of 12.5%; Japan, South Korea, Switzerland, and the European Union will be subject to tariffs ranging from 10% to 12.5%. Countries such as Canada, Mexico, India, Indonesia, and the United Kingdom will be subject to an additional 10% tariff on top of the existing U.S. import tariffs.
Experts say that the alleged "forced labor" accusations are merely a pretext for imposing additional tariffs, and are part of President Trump's overall trade agenda of "America First".
Another investigation, based on Article 301 of the Trade Act of 1974, is still underway. The investigation focuses on the issue of alleged ‘industrial overcapacity’ in 16 economies, including mainland China, Taiwan region, India, Japan, South Korea, Mexico, the European Union, and several Southeast Asian countries.
Thursday's measures are one of the largest tariff actions since the "Liberation Day" in April 2025. At that time, the Trump administration announced global tariffs on almost all of its trade partners, causing market panic.
However, this time, the new tariffs are unlikely to trigger a similar reaction, as Trump has repeatedly announced increases in taxes and made concessions, making his policy less impactful than it used to be.
Before this statement from the U.S. Trade Representative Office (USTR), U.S. trade policy had been relatively calm for several months, which provided related industries with a rare opportunity to breathe. This means that Trump has returned to his usual policy approach.
Consulting company Peacock Tariff Consulting international trade advisor Ashley Kalyn said, "True cost is not tax rate but uncertainty."
Whenever a legal basis is overturned by the court, the government will turn to another legal basis.
Analysts say that the Trump administration has taken advantage of this forced “breathing space” to develop various alternatives. This has allowed the president, who calls himself the “tariff man,” to freely use import tariffs once again, without being constrained by investigation procedures or review mechanisms. In this way, pressure and retaliation can be maximally exerted.
In February of this year, the U.S. Supreme Court ruled that the widespread tariffs imposed by Trump under the International Emergency Economic Powers Act (IEEPA) were unconstitutional. Since then, the U.S. government has been seeking new legal tools.
When this notice was issued on Thursday, the 10% overall tariff imposed under Article 122 of the Trade Act of 1974 was only hours away from expiring. This tariff was introduced in February this year after a court ruling.
In recent days, the United States has successively announced a series of new trade measures, including new tariffs on imported goods from Brazil and Canada.
The US government, in accordance with Section 301 of the Trade Act of 1974, investigated alleged ‘unfair trade practices’ and imposed a 25% tariff on about one-third of Brazilian imports. This measure took effect on Wednesday.
Although the United States has maintained a trade surplus with Brazil for a long time, Brazil has still become a target for increased tariffs by the United States.
In another measure announced on Monday, Trump invoked Section 338 of the Trade Act of 1930 and announced that he would impose a 50% tariff on certain Canadian goods within 30 days, citing the Canadian government's suspected "trade discrimination" against several American industries. This further demonstrates his attempt to bypass existing restrictions and precedents.
This little-known trade enforcement provision from 1930 originated during the most protectionist period of the Great Depression, and had never been used before. Theoretically, it gives Trump more extensive, faster, and less restrictive power to impose tariffs than almost any other trade law.
A spokesman for the Chinese Ministry of Foreign Affairs has stated that China has always opposed unilateral tariff measures in all forms. Tariff wars and trade wars do not serve the interests of any party, and economic and trade issues should be resolved through dialogue and negotiation on an equal, respectful, and mutually beneficial basis. There is no such thing as 'forced labor' in China, and we oppose using this as a pretext for political manipulation.
In addition, a spokesman for the Chinese Ministry of Commerce also stated that the United States has yet to ratify the Convention on Forced Labour of 1930, refusing to be bound by international rules. However, the US has long been manipulating the issue of "forced labour". The US's initiation of the 301 investigation against China and relevant economies is a typical act of protectionism, characterized by unilateralism, arbitrariness, and discrimination.
The WTO Appellate Body has already ruled that the US's 301 tariff measures against China violate WTO rules. The US's repeated abuse of the 301 investigation procedure, by putting domestic laws above international rules, is a mistake after another. This seriously undermines the security and stability of the global industrial and supply chains and disrupts the international economic and trade order.
