New US tariffs of up to 12.5% on imports from 60 economies took effect at 12:01 a.m. Eastern Time on Thursday, replacing the expiring global 10% levy after the Trump administration cited inadequate enforcement of forced-labor import bans. Countries with forced-labor import bans in place, such as India and Pakistan, face a 10% rate, while 38 nations without such legislation — including China, Russia and Australia — are hit with 12.5%. The duties, covering more than 99% of US imports and authorized under Section 301 of the Trade Act of 1974, were adopted after the Supreme Court struck down earlier IEEPA-based tariffs in February. Exemptions apply to steel, aluminum, automobiles, civilian aircraft, rare earth minerals and USMCA-covered goods.
Switzerland, which relies on a risk-based due-diligence regime rather than an outright import ban, was placed in the 12.5% bracket. The Swiss government rejected the US allegations, called its framework equivalent, and said it may challenge the tariffs through negotiations or a World Trade Organization complaint. A separate Section 301 probe into industrial overcapacity could bring additional levies against Bern.