US Hits Pakistan With New Import Tariffs

The United States on Friday imposed new tariffs ranging from 10% to 12.5% on imports from 60 trading partners, including Pakistan, as part of a broader trade measure aimed at countries the Trump administration says have failed to adequately enforce bans on goods produced through forced labour.

The new duties came into effect at 12:01 a.m. EDT on Friday, immediately after the expiration of President Donald Trump’s temporary 10% global tariff, which had remained in place for 150 days. Goods already in transit are exempt until 12:01 a.m. EDT on July 28.

The tariffs were announced through a Federal Register notice issued on Thursday and apply to 99.4% of US imports, although several categories of products have been exempted.

The action was introduced under Section 301 of the Trade Act of 1974, allowing the administration to maintain a minimum tariff level on most imports after the US Supreme Court struck down Trump's earlier reciprocal tariffs in February.

Those reciprocal tariffs, which ranged from 10% to 50%, had been imposed under national emergency powers to reduce the US trade deficit. Since Section 301 has previously survived legal challenges, the latest measures are expected to face fewer legal obstacles.

Pakistan is among 18 countries subject to the 10% tariff, alongside Argentina, Bangladesh, Britain, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Sri Lanka, and Trinidad and Tobago.

Meanwhile, the European Union, Taiwan, Japan, South Korea, and Switzerland were assigned tariff rates that, together with existing most-favoured-nation duties, result in total tariffs of either 10% or 12.5%.

Another 38 countries, including China and Vietnam, are subject to the higher 12.5% tariff.

Vietnam recently introduced stricter rules on imports linked to forced labour, while China continues to reject US allegations concerning the detention of Uyghur minorities in forced labour camps.

US Trade Representative Jamieson Greer said the United States has enforced restrictions on forced-labour imports for nearly a century and expects its trading partners to implement similar standards.

Greer also stated that countries with trade agreements setting tariff ceilings would not see the new forced-labour duties push rates beyond the agreed limits.

Trump administration officials have also informed China that second-term tariffs on Chinese imports will return to the 20% level agreed during the November 2025 trade truce between President Donald Trump and President Xi Jinping, without exceeding that threshold.

Before Friday's announcement, tariffs on Chinese goods had fallen to 10%, excluding the 25% duties imposed on industrial products during Trump's first term.

The new tariffs drew criticism from several US trading partners.

European Union foreign policy chief Kaja Kallas said the decision was unexpected and questioned its justification, arguing that the EU already maintains strong labour protection standards.

Australia and Brazil described the tariffs as unjustified and pledged to seek their removal, while Norway said there was no valid basis for the measures.

Canada, which earlier this week was also subjected to new tariffs covering $20 billion worth of goods, said it would continue negotiations with Washington over the unilateral trade actions and other outstanding issues.

Kelly Ann Shaw, a former White House trade adviser, said the latest action largely matched previous expectations, although the administration expanded the exemption list by adding around 471 products.

A senior US administration official rejected claims that the new forced-labour tariffs were merely replacing the expired global tariff, despite their similar timing, rates, and coverage.

The official argued that weaker enforcement of forced-labour standards abroad places American businesses at a competitive disadvantage.

Trade lawyer Ryan Majerus said the tariffs could be more difficult to challenge in court because Section 301 has already survived previous legal disputes and provides the administration with broad authority to adjust import duties.

Exemptions include oil and gas, fertilisers, selected food products, aircraft and aircraft parts, and critical minerals.

Products already covered under Section 232 national security tariffs, including automobiles, steel, aluminium, and copper, remain exempt.

Goods traded under the United States-Mexico-Canada Agreement (USMCA) will also continue to be exempt because of North America's integrated supply chains and their substantial US content.