US to Levy New Tariffs Up to 12.5% on 60 Trading Partners Over Forced Labor Concerns

The United States is set to implement new tariffs, reaching up to 12.5%, on imports from 60 trading partners, including Japan, South Korea, and the European Union, effective Friday, July 24, 2026. This move stems from the U.S. government's assertion that these nations have not sufficiently prohibited goods manufactured through forced labor.

U.S. Trade Representative Jamieson Greer stated that decades of moral persuasion have failed to eradicate forced labor from global supply chains. "The United States has had a near-century-long ban on imports of goods made with forced labor and has enforced it rigorously. It is time for our trading partners to do the same," Greer said in a statement.

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President Trump recognizes that decades of moral suasion have not succeeded in eradicating forced labor from global supply chains.

This policy follows the expiration of a 10% global tariff introduced in February. The announcement comes shortly after the Supreme Court overturned a "reciprocal tariff" policy enacted by President Donald Trump, as well as duties related to fentanyl on goods from China, Canada, and Mexico. Previously, the Trump administration had imposed a 10% tariff under different legal authority, but this could only last 150 days without Congressional approval.

For Indonesia, the U.S. market constitutes 17% of its total trade value, contributing 2.2% to its GDP. President Donald Trump had previously suspended a 90-day reciprocal tariff increase, which would have impacted Indonesia at 32%.

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The United States has had a near-century-long ban on imports of goods made with forced labor and has enforced it rigorously. It is time for our trading partners to do the same.