The Supreme Court struck down the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in February 2026. A temporary 10% global surcharge under Section 122 filled the gap until it expired on Jul 24, 2026, and new Section 301 forced-labor tariffs took over the same day: 10% for 17 economies, including Canada, Mexico, India, and the UK, and 12.5% for 38 others, including China, Australia, and Brazil. Goods already covered by Section 232 tariffs are exempt.
Capped deals: the EU and Taiwan pay no more than 10% in combined normal and forced-labor duties, and Japan, South Korea, and Switzerland no more than 12.5%. Steel and aluminum remain at 50% for most partners and 25% for the UK.
China: the 12.5% forced-labor tariff stacks on top of existing Section 301 tariffs (25% on most lists, 100% on electric vehicles, 50% on semiconductors). During Xi Jinping’s Sep 24 White House visit, the 2 sides extended the Busan truce by 2 months to Jan 10, 2027 — the next key date to watch.
North America: at the Jul 1, 2026, joint review the US declined to renew the US-Mexico-Canada Agreement (USMCA) in its current form. The agreement stays in force through 2036 but now faces annual reviews, and goods that qualify under it are exempt from the forced-labor tariffs. Talks with Canada collapsed in August: a 50% Section 338 tariff on about $20 billion of Canadian goods, including dairy, alcohol, and wood products, took effect Aug 22, and Canada answered with matching tariffs of up to 50% on Sep 8. Talks with Mexico continue, focused on auto rules and steel tariffs.