On Thursday 23 July 2026, the Trump administration announced a fresh wave of tariffs on 60 trading partners, including the UK, China, and the European Union, ranging from 10% to 12.5% on all goods. The new duties take effect at 12:01 a.m. ET on Friday 24 July, replacing a temporary 10% global tariff that expires the same day. The move is the latest escalation in a trade war that reignited when Donald Trump returned to office last year, and it follows a Supreme Court ruling in February that struck down many of his earlier tariffs as illegal.
The tariffs are being imposed under the justification that the targeted countries have failed to properly tackle forced labour in their supply chains. The U.S. Trade Representative’s office says it carried out months-long investigations into trading partners’ efforts to prevent imports of goods made with forced labour. Countries that have “made commitments to adopt, and effectively enforce, forced labour import prohibitions”—including the UK, Canada, the European Union, India, and Mexico—face a 10% tariff. Those that have “failed to adopt a forced labour import prohibition”, such as Australia, Brazil, China and Japan, will face a 12.5% rate. However, trade experts have challenged this reasoning. Caroline Freund, dean of UC San Diego’s School of Global Policy and Strategy, told the BBC that the forced labour argument is “not about forced labour” but that the administration is “looking for a legal reason to put the tariffs in”. Her view is that the real goal is to reduce the U.S. trade deficit and boost American manufacturing.
“US imposes 10-12.5% tariffs on 60 countries including UK, citing forced labour, after Supreme Court struck down earlier levies.”
The background to this new round lies in the legal battle over Trump’s tariff powers. In February 2026, the U.S. Supreme Court ruled 6-3 that the 1977 law Trump had used to impose global “Liberation Day” tariffs was not a proper legal basis during peacetime. The court said that the power to set most tariffs belongs solely to Congress. The White House then proposed the current forced-labour-based tariffs last month as a way to keep levies in place without needing new legislation. The new duties cover 99.4% of U.S. imports and effectively recreate the previous 10% blanket tariff, now differentiated by country.
For UK readers, the most immediate impact is that British goods entering the U.S.—from Scotch whisky to cars—will now face a 10% tariff. The head of the British Chambers of Commerce, William Bain, told the BBC that the UK has lost its comparative advantage against the European Union, which secured a 10% all-inclusive deal for its goods. By contrast, the UK faces 10% universal tariffs on top of existing sectoral duties. The tariffs are likely to raise costs for businesses and consumers on both sides of the Atlantic, though the effect may be softened by exemptions on some goods, according to Wendy Cutler of the Asia Society Policy Institute. Most trading partners are expected to focus on reducing their dependence on the U.S. by striking deals elsewhere.
Q: Why is the US imposing these new tariffs? The official reason is that targeted countries have not done enough to stop forced labour in their supply chains. However, many trade experts believe the real motive is to reduce the U.S. trade deficit and boost domestic manufacturing, and that the forced labour argument is a legal workaround after the Supreme Court struck down previous tariffs.
Q: Which countries are affected and what are the tariff rates? The tariffs apply to 60 countries, covering nearly all U.S. imports. Countries that have committed to forced labour import bans (including the UK, Canada, the EU, India, and Mexico) face a 10% tariff. Those that have not adopted such bans (including Australia, Brazil, China, and Japan) face a 12.5% tariff.
Q: How will these tariffs affect UK businesses and consumers? UK exporters will pay 10% on goods sold to the U.S., making them less competitive compared to EU rivals who have a similar deal but without additional sectoral tariffs. This could lead to higher prices for UK goods in America and potentially reduced demand. British consumers may also feel the pinch if the UK retaliates or if global supply chains are disrupted.
What happens next? The new tariffs took effect on 24 July 2026, so the immediate question is how affected countries will respond. The UK government has not yet announced retaliatory measures, but trade experts expect most partners to seek alternatives to reduce reliance on U.S. markets. The legal basis for the tariffs could also face further court challenges, as the forced labour justification remains contested. For now, the Trump administration has signalled it is determined to press ahead with its tariff strategy, and the cycle of escalation shows no signs of easing.