United States Imposes New Tariffs on Over Eighty Countries as Previous Duties Expire
Washington, Friday, 24 July 2026.
To bypass a Supreme Court ruling, the Trump administration has leveraged forced labor laws to impose new tariffs of up to 12.5% on over eighty trading partners.
Navigating the Legal Shift to Section 301
Yesterday, on July 23, 2026, United States Trade Representative Jamieson Greer announced that the Republican administration under President Donald Trump is imposing new tariffs ranging from 10% to 12.5% on more than 80 countries [1][GPT]. This newly implemented trade policy targets major trading partners, including the United Kingdom, Mexico, Canada, Australia, India, China, and the 27 member states of the European Union [1]. The administrative pivot comes as a direct response to a legal deadline: the previous 10% baseline global tariff, which was implemented on February 20, 2026, officially expired today, July 24, 2026, at 00:01 EST [1]. To justify the new duties and bypass congressional authority, the administration is utilizing Section 301 of the Trade Act of 1974, citing concerns over forced labor practices among its trading partners [1].
The Battle Over Executive Power
The transition to Section 301 represents a calculated effort by the executive branch to navigate a stringent constitutional boundary. On February 20, 2026, the United States Supreme Court ruled 6-3 that tariff-setting authority during peacetime constitutionally resides with Congress, declaring many of the administration’s earlier tariff attempts illegal [1]. Prior to this, in April 2026, President Trump had enacted an initial 10% baseline tariff by invoking the International Emergency Economic Powers Act, effectively bypassing Congress by declaring a national emergency [1]. By shifting to Section 301 forced labor provisions, the administration is introducing a new tariff bracket of up to 12.5%, representing an increase of up to 25% over the previous 10% baseline rate [1]. Beyond these immediate measures, the administration intends to utilize Section 301 to conduct investigations and potentially impose permanent tariffs on trading partners accused of unfair practices, though these investigations remain pending [1]. However, legal experts remain highly skeptical of this maneuver. Alan Wolff, a senior fellow at the Peterson Institute for International Economics, stated on July 23, 2026, that these new tariffs likely constitute presidential overreach and would be overturned by the Supreme Court if challenged in court [1].
The Inflation Debate and Domestic Impact
The domestic economic consequences of the administration’s aggressive trade agenda continue to spark intense political debate. During a Senate testimony on July 22, 2026, Greer defended the administration’s record, asserting that tariffs have not increased consumer prices for American families [1]. Greer highlighted that core inflation had fallen to 2.6% year-on-year, a figure he argued was much better than the levels recorded in January 2025 [1]. However, this optimistic assessment directly clashes with public sentiment and economic data from earlier in the year. A 2026 Harris Poll survey revealed that 70% of Americans reported paying higher prices due to tariffs, while 72% perceived a negative overall impact on consumers [1]. This public anxiety is backed by macroeconomic indicators, as US inflation hit a prominent three-year high in May 2026 [1].
Escalating Tensions and Multilateral Skepticism
The new tariffs have drawn immediate protests from key US allies, who view the sudden policy shift with deep skepticism. Matthew Holmes, executive vice-president of the Canadian Chamber of Commerce, criticized the timing of the announcement, noting that it closely coincided with the sunset of the previous tariff rounds [1]. Holmes argued that if the administration’s true intent were to eliminate forced labor, it should pursue a coordinated, multilateral approach rather than resorting to unilateral trade barriers [1]. These tensions are particularly acute between the US and Canada. Just days earlier, on July 21, 2026, President Trump announced a separate, massive 50% tariff on Canadian imports, citing “unequal treatment” of US automotive, dairy, and alcohol sectors [2]. This 50% duty is a planned policy scheduled to take effect next month on August 22, 2026 [2]. The trade dispute arrives at a challenging time for Canada, which is grappling with 838 active wildfires as of July 23, 2026, disrupting vital infrastructure such as CN Rail freight operations [2].