Trump seeks new tariffs after Supreme Court blocks trade strategy

The Trump administration is moving quickly to rebuild its tariff policy after a series of court rulings struck down key trade measures that generated billions of dollars in federal revenue.

This week, the administration proposed new tariffs on imports from dozens of major U.S. trading partners, arguing that many countries have failed to prevent goods produced with forced labor from entering global supply chains. The move represents the latest effort by President Donald Trump to maintain a broad tariff framework despite significant legal setbacks.

Under the proposal, 16 economies — including Canada, Mexico, the European Union, Taiwan, and the United Kingdom — would face tariffs of 10%. Another 44 countries, including China, Japan, India, South Korea, and Switzerland, could see import duties of 12.5%.

Forced labor investigation becomes basis for new tariffs

The proposed duties stem from an investigation conducted by the Office of the U.S. Trade Representative (USTR), which concluded that many countries are not doing enough to stop imports linked to forced labor.

U.S. Trade Representative Jamieson Greer said the situation places American workers at a disadvantage by forcing them to compete against products produced under unfair labor conditions.

The administration argues that countries allowing such products into their supply chains create barriers to fair trade and justify action under Section 301 of the Trade Act of 1974, a legal authority previously used by Trump to impose tariffs on China during his first term.

Legal setbacks force a new approach

The latest proposal follows major defeats in court.

Earlier this year, the U.S. Supreme Court ruled that Trump exceeded his authority when he used the International Emergency Economic Powers Act (IEEPA) to impose broad global tariffs in 2025. The decision invalidated tariffs affecting nearly every U.S. trading partner and opened the door for importers to seek refunds.

After that ruling, the administration temporarily replaced the measures with a separate set of 10% tariffs. However, those duties are also facing legal challenges and are scheduled to expire on July 24.

The administration is now relying on Section 301 because it has historically survived judicial scrutiny and provides a more established legal foundation for trade actions.

Trading partners push back

Several countries have already criticized the proposal.

China rejected allegations that its exports involve forced labor and accused Washington of using labor concerns as a political tool. Chinese officials called for dialogue instead of escalating trade tensions.

European officials were equally critical. Bernd Lange, chairman of the European Parliament’s trade committee, argued that the European Union already has some of the world’s strictest regulations against products made with forced labor.

Critics say the new investigation appears designed to provide a legal justification for tariffs that courts previously rejected.

Revenue and political pressure

Tariffs have become a central component of Trump’s economic agenda, generating tens of billions of dollars in government revenue.

Collections peaked at more than $31 billion in October 2025 but have declined following legal challenges. Treasury Department data shows tariff revenue fell to approximately $22 billion in both March and April 2026.

The White House has been searching for ways to replace lost revenue, particularly after the passage of major tax cuts in 2025 that reduced federal income.

At the same time, the administration is attempting to limit the political fallout from higher consumer prices ahead of the midterm elections. The proposal includes exemptions for numerous products, including aircraft parts, food items, rare earth minerals, and many goods covered under the North American trade agreement between the United States, Canada, and Mexico.

More trade actions could follow

The forced labor tariffs may be only the beginning.

The administration is also pursuing additional Section 301 investigations into alleged overproduction by major trading partners, including China, Japan, and the European Union. Officials argue that excess production lowers global prices and harms American manufacturers.

In a separate move, the White House recently proposed 25% tariffs on imports from Brazil, citing what it described as unfair trade practices and inadequate anti-corruption enforcement.

Public hearings on the new forced labor tariffs are scheduled to begin on July 7. If approved, the measures could take effect shortly after the current temporary tariffs expire, ensuring that Trump’s broader trade strategy remains in place despite ongoing legal challenges.