New Tariffs on 60 Countries Just Took Effect — Here's What They'll Cost Your Business

If your business imports anything — parts, packaging, inventory, raw materials — your costs likely just went up. On July 23, 2026, the U.S. Trade Representative announced new tariffs of 10% to 12.5% on goods from 60 countries, taking effect as older worldwide tariffs expired on July 24. For a small business ordering a $20,000 container of goods, that's an extra $2,000 to $2,500 landing on the invoice, with no warning period to plan around it.

What Just Changed

The new duties come from Section 301 of the Trade Act of 1974, the same legal mechanism used for earlier rounds of tariffs. This time, the USTR's stated justification is different: the tariffs target countries that have "failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor." In practice, the tariffs apply broadly — the action covers roughly 99.4% of all U.S. imports, meaning almost every importing business is affected in some way.

These tariffs replace temporary global duties that were set to expire this week after the Supreme Court struck down an earlier version of the administration's broader "liberation day" tariffs. The White House used the forced-labor investigation as the new legal basis to keep tariff revenue and pressure in place.

Which Rate Applies to You

The 10% Tier

A lower 10% tariff applies to imports from countries that already have a forced-labor import ban, have committed to adopting one under a reciprocal trade agreement, or have a partial regime in place. That list includes Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.

The 12.5% Tier

The remaining 46 economies — which have neither banned forced-labor imports nor committed to doing so — face the higher 12.5% rate. If you source from manufacturers in these countries, expect the larger cost increase to show up on your next shipment.

What's Exempt

Not everything is hit. Oil, gas, and fertilizer imports are carved out, and goods that already qualify for duty-free treatment under the U.S.-Mexico-Canada Agreement are spared. For imports from places with existing Most-Favored Nation tariff rates — the EU, Japan, South Korea among them — the new Section 301 duty is applied net of the existing MFN rate, so the combined total shouldn't exceed 10% or 12.5% unless the MFN rate was already higher.

What This Actually Means for Your Bottom Line

For a small retailer, restaurant supplier, or product-based business, this isn't an abstract policy story — it's a direct hit to landed cost. A boutique importing furniture from Vietnam, a food business sourcing packaging from China, or a contractor buying hardware manufactured overseas will all see the new duty applied at customs, typically passed straight through by the importer of record.

Because the tariff is assessed at the border, it shows up as a cost increase before the product ever reaches your shelf or warehouse — which means it eats into gross margin unless you adjust pricing, renegotiate with suppliers, or absorb it. Businesses that haven't recalculated landed cost since before July 24 are likely underpricing their current inventory pipeline.

Steps to Take This Week

• Identify your exposure. Pull your last 12 months of import invoices and flag which countries of origin fall into the 10% or 12.5% tier.
• Recalculate landed cost. Rebuild your cost-per-unit math to include the new duty, then compare it against current retail or wholesale pricing. This is a good moment to revisit your profit and loss statement and see exactly where the new cost lands.
• Talk to your customs broker. Ask specifically whether your product's Harmonized Tariff Schedule (HTS) code is affected, and whether any USMCA or MFN offset applies to your shipments.
• Revisit supplier contracts. If a contract splits tariff risk with your supplier, this is the moment to invoke it. If it doesn't, this is the moment to negotiate one for future orders.
• Model a price adjustment. Even a modest price increase, phased in over the next billing cycle, can offset a 10–12.5% cost jump without shocking customers all at once.

Why This Could Keep Changing

Section 301 tariffs have proven changeable over the past two years, shifting with legal challenges, trade negotiations, and court rulings. The Supreme Court's rejection of the earlier "liberation day" tariffs is exactly why the administration pivoted to this forced-labor justification. Small business owners with meaningful import exposure should treat this rate as current, not permanent, and keep a close eye on further USTR notices — a country reclassified from the 12.5% tier to the 10% tier (or vice versa) can shift your costs again with little notice.

If your business runs on thin retail margins, this is also a good time to make sure your banking and cash flow buffer can absorb a sudden cost swing — a business bank account with a clear view of cash reserves makes it easier to weather a surprise like this one without scrambling.

The Bottom Line

These tariffs are already in effect, not proposed. If you import goods, materials, or components from any of the 60 listed countries, assume your next shipment costs more than the last one — and build that into your pricing and purchasing decisions now rather than after the invoice arrives.

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