US Tariffs Under Section 301: 10% and 12.5% Levies Target Global Partners Over Forced Labour

The US government planned new import duties of at least 10% on many trade partners, including India. The move followed an investigation into forced-labour risks in global supply chains. Some countries would face a higher 12.5% charge. President Donald Trump aimed to protect American jobs and reduce trade imbalances.

The Office of the US Trade Representative said the lower 10% tariff would cover Canada, Mexico, the European Union, Taiwan, the UK, and others. A 12.5% levy would apply to goods from China, India, Japan, South Korea, Brazil, and Switzerland. Written comments were due by 6 July.

Proposed tariff rate	Economies named in the proposal
10%	Canada, Mexico, the European Union, Taiwan, the UK, and several other partners
12.5%	China, India, Japan, South Korea, Brazil, Switzerland

The trade office notice said a Section 301 panel was set to begin public hearings from 7 July. The consultation process required written feedback first. Officials also faced timing pressure from an earlier temporary tariff. That separate 10% global duty was imposed under Section 122.

The planned duties grew out of a Section 301 investigation. The initial review covered about 60 economies. It examined alleged forced-labour use in supply chains. The administration argued those imports weakened US industry competitiveness. It also said new duties would deter such goods and raise labour scrutiny.

"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," said Ambassador Jamieson Greer. "We will no longer tolerate this disparity. Some trading partners have taken initial steps to prevent the importation of forced labor goods, including through USMCA and commitments in Agreements on Reciprocal Trade. However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally."

US tariffs: legal path, timeline, and market access talks

The push relied on Section 301 after a major court setback. In February, the US Supreme Court annulled broad tariffs imposed using emergency powers. That weakened a key part of Trump’s earlier trade playbook. The White House then leaned on Section 301, which was slower but stronger in court.

Many key partners had mostly avoided retaliatory steps so far. Instead, they explored negotiated arrangements to lower some duties. They also aimed to protect access to the US market. The proposed 12.5% rate could test that restraint. India, China, and Japan were among those listed.

Officials described Section 301 tariffs as more durable than emergency measures. They also called them more adaptable over time. However, the process required public consultation and took longer. Jamieson Greer said the administration aimed to finish pending probes before Section 122 duties expired in July.

Sanchari Ghosh, Assistant Editor at Mint, had worked in journalism for more than 12 years. Reporting areas included personal finance, Distributed Ledger Technology, DeFi, geopolitics, and foreign policy. Ghosh also explained money flows in DLT, crypto, and DeFi. Coverage also included immigration, visas, and overseas planning.

The proposed US tariffs set out two headline rates, with India placed in the 12.5% group. The plan moved through the Section 301 process, with comments due by 6 July and hearings from 7 July. The timeline also linked to Section 122 duties ending in July. Wider talks could shape responses, but the formal process continued.