U.S. Establishes New Tariff Framework for 60 Economies, Marking a New Phase in President Trump's Trade Policy

On July 24, 2026, the Trump administration officially launched a new tariff mechanism targeting 60 economies, affecting approximately 99% of total U.S. merchandise imports. The move represents the latest - and potentially the most legally sustainable - step in the administration's tariff strategy, which has evolved over the past 18 months in response to a series of legal challenges.

Section 301 Becomes the New Legal Foundation

According to the Office of the United States Trade Representative (USTR), the new tariffs range from 10% to 12.5% and took effect immediately after the temporary 10% global tariff imposed under Section 122 of the Trade Act expired.

Unlike previous measures, the administration has chosen Section 301 of the Trade Act of 1974 as the legal basis for the new tariff regime. This is the same provision President Donald Trump relied on during his first term to impose tariffs on China, and one that has already been upheld as lawful by the U.S. court system.

Notably, the justification for the tariffs has shifted away from trade deficits and is now based on labor standards. According to the USTR's findings, the 60 economies under review have either failed to enact or have not effectively enforced laws prohibiting the importation of goods produced with forced labor.

The new framework also introduces a phased tariff escalation mechanism. The initial tariff rates of 10% to 12.5% will remain in effect for the first two years. Countries that fail to meet U.S. requirements thereafter will face tariffs rising to 100% in the following year, with rates potentially increasing to 200% in subsequent years.

Several product categories are exempt from the new tariffs, including oil, natural gas, fertilizers, and products that are not manufactured domestically in the United States. Goods that qualify under the United States – Mexico – Canada Agreement (USMCA) will also remain exempt, preserving the vast majority of trade flows among the three North American partners.

Two Tariff Categories Covering 60 Economies

The USTR has divided the 60 economies into two groups based on their compliance with regulations related to forced labor.

The 10% tariff group includes 17 economies that have either enacted import bans on goods produced with forced labor or have committed to labor standards under trade agreements with the United States. These include Canada, Mexico, the European Union (EU), the United Kingdom, Ecuador, Indonesia, Pakistan, Honduras, India, Trinidad and Tobago, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, and Taiwan.

The 12.5% tariff group covers 43 economies that, according to the USTR, do not have effective enforcement mechanisms addressing forced labor. This category includes several major U.S. trading partners, such as China, Japan, South Korea, Brazil, Australia, Switzerland, Norway, Saudi Arabia, the United Arab Emirates (UAE), Vietnam, Thailand, South Africa, Nigeria, as well as numerous other countries across Latin America, the Middle East, and Southeast Asia.

Russia Included in the Tariff List for the First Time

Most of the economies covered by the new framework had previously been affected by the "Liberation Day" tariff program announced in April 2025, under which the United States imposed a 10% baseline tariff on most trading partners and significantly higher reciprocal tariffs on approximately 57 economies.

The most notable change under the new framework is that Russia has been included for the first time, falling into the 12.5% tariff category.

Previously, Russia, Belarus, and North Korea were excluded from the "Liberation Day" program because Washington argued that existing sanctions had already reduced trade with these countries to negligible levels. Under the new mechanism, Belarus, North Korea, and Cuba remain exempt.

Meanwhile, the decision to impose only a 10% tariff on the European Union has drawn considerable attention from market observers. The announcement came just days after the United States and the EU reached a new trade agreement under which Europe agreed to eliminate import duties on U.S. industrial goods. The move suggests that the EU's tariff concessions do not necessarily mean Washington will reciprocate with equivalent trade measures.
Three Legal Foundations in 18 Months

The most significant aspect of the new policy is not the tariff rates themselves, but rather the legal framework supporting them.

Over the past 18 months, the Trump administration has changed the legal basis for its broad tariff strategy three times:

●    April 2025: Tariffs were imposed under the International Emergency Economic Powers Act (IEEPA) as part of the "Liberation Day" initiative, with rates reaching as high as 46% for certain economies.

●    February 2026: In a 6–3 ruling, the U.S. Supreme Court determined that the IEEPA does not grant the President the authority to impose tariffs. As a result, the entire "Liberation Day" tariff framework - including fentanyl-related tariffs on China, Mexico, and Canada - was invalidated.

●    February – July 2026: The United States implemented a temporary 10% global surcharge under Section 122 of the Trade Act, although this mechanism was legally limited to 150 days.

●    July 2026: The administration shifted to Section 301 of the Trade Act of 1974, providing a more durable legal foundation without the time limitations associated with Section 122.

Compared with the "Liberation Day" program, the new framework starts with lower tariff rates but incorporates a long-term escalation mechanism while resting on a stronger legal foundation. The new tariffs will also operate alongside the existing Section 232 tariffs on steel, aluminum, automobiles, and semiconductors, which remain in force.

Businesses Should Prepare for a Long-Term Tariff Environment

According to industry observers, the defining characteristic of President Trump's tariff strategy has been its consistent commitment to trade protectionism. Each time the administration encountered legal obstacles, it adjusted the legal basis of its tariff policy rather than abandoning the broader objective.

Notably, the United States is also conducting another Section 301 investigation into global industrial overcapacity, covering 16 economies and approximately 70% of total U.S. imports. This suggests that additional rounds of tariffs could emerge in the near future.

For importers, exporters, ocean carriers, and supply chain planners, U.S. tariffs should no longer be viewed as temporary policy disruptions. Instead, they are increasingly becoming a structural factor that businesses must incorporate into sourcing decisions, logistics network design, and long-term trade strategies in the years ahead.

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Source: Phaata.com (According to Seatrade Maritime)

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