Trump Proposes New Levies of at Least 10% to Rebuild Tariff Wall

Containers at the Port of Oakland in Oakland, California, US, on Thursday, March 26, 2026. The US Census Bureau is scheduled to release US imports and exports figures on April 2. Photographer: David Paul Morris/Bloomberg Photo by David Paul Morris /Bloomberg

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(Bloomberg) — The US is proposing new tariffs of at least 10% on imports from 60 trading partners following an investigation into goods allegedly produced by forced labor, as President Donald Trump seeks to rebuild the sweeping tariff wall struck down by the US Supreme Court.

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The 10% rate would apply to imports from Canada, Mexico, the European Union, Taiwan and the UK, among other places, according to a statement from the Office of the US Trade Representative. Products from other major economies, including China, India, Japan, South Korea, Brazil and Switzerland, would be subject to a 12.5% levy.

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The trade office said it was imposing the lower rate on goods from economies that impose prohibitions on forced labor imports or have committed to doing so, while those “that have failed to impose and effectively enforce” them received a higher rate. 

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The move is a major step in Trump’s push to reinstate the country-by-country tariffs he imposed during his first year in office before they were deemed unconstitutional. The recommended duties are a result of probes launched under a separate legal authority known as Section 301 of the Trade Act of 1974.

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“It’s very impactful because Section 301 is an extremely powerful tool, and it’s unlikely to be overturned,” said Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore. “In the hands of an administration determined to cause mischief, you’ve opened a door now for a whole lot of new tariff and non-tariff adjustments.”

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Equities remained higher after the news. MSCI’s All Country World Index rose 0.1% to a record, with gauges in Asia and the US setting all-time highs. 

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More broadly, the levies arrive at a pivotal time for the global economy with financial markets already on edge over the Iran war and a resultant spike in oil and gas prices. Those higher energy prices have fueled new fears about inflation, and in the US exacerbated affordability concerns among voters that threaten Trump’s Republican Party in November’s midterm elections.

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The levies won’t go into effect immediately and are subject to a public comment and review period before implementation, which could result in changes before any duties are codified. Written comments are due to be submitted by July 6, and a Section 301 panel is expected to convene public hearings beginning on July 7, according to the notice.

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“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” US Trade Representative Jamieson Greer said in a statement. “We will no longer tolerate this disparity.”

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The move will test the tolerance of the largest US economic partners, who have largely restrained from retaliating against Trump’s tariffs, opting instead to negotiate deals to lower import taxes and ensure market access.

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Japan’s trade and foreign ministries, China’s foreign ministry and the Australian government didn’t immediately respond to requests for comment on the proposed tariffs.