The BGA Global Trade and Economics (GTE) Team prepared an update for clients on the latest set of tariffs rolled out on 60 countries by the Office of the U.S. Trade Representative (USTR).

Context

  • U.S. President Donald Trump rolled out a set of new tariffs July 23. This is to reconstruct the U.S. trading system after the Supreme Court struck down his earlier duties on imports in February.The U.S. administration levied new tariffs of between 10 percent and 12.5 percent on imports allegedly made with forced labor from 60 countries, many of which are in the Indo-Pacific.
  • The finalized Section 301 duties earlier announced June 2 will replace a temporary 10 percent duty that Trump imposed under Section 122 of the Trade Act of 1974 after the Supreme Court ruling. The Section 122 tariffs expired July 24. The Section 301 tariffs on many countries are lower than the “reciprocal” tariffs Trump announced in April 2025 under the International Emergency Economic Powers Act (IEEPA), which the Supreme Court said did not authorize the president to impose those duties.

Significance

  • Countries with laws to challenge forced labor received 10 percent tariffs, while those without such measures received 12.5 percent tariffs. Ten countries, India among them, lowered their tariff rates by taking steps since the release of the proposed action to tackle forced labor after the proposed tariffs were announced in June. In addition to the forced labor investigation, the administration is still in the middle of another set of investigations against 16 countries, including China, India, Indonesia, Japan, Korea, Singapore, Taiwan and Vietnam, for alleged excess manufacturing capacity
  • The new tariffs underscore the administration’s determination to preserve a broad tariff regime despite the Supreme Court’s decision limiting its use of emergency powers. While the legal basis has shifted, the move reaffirms that tariffs will remain a central feature of U.S. trade policy and that businesses should continue to expect trade measures to play a prominent role in Washington’s economic and geopolitical strategy

Implications

  • Companies should continue to plan for tariffs to be imposed in the near future given pending investigations on excess manufacturing capacity and intellectual property, as well as on sectors like semiconductors, pharmaceuticals and medical devices that could be viewed as a threat to national security, all of which have yet to be finalized. Some U.S. legal experts say the administration’s use of Section 301 has stretched beyond what the statute intended and predict that these new tariffs may also face legal challenges in court, which could again force U.S. trade officials back to the drawing board. However, previous Section 301 tariffs have held up against legal challenges and will likely be the preferred tool of choice going forward, notwithstanding procedural hurdles. This will be accompanied by Section 232 actions for sectors or categories of goods deemed to threaten national security.
  • Businesses should expect continued trade policy uncertainty and ongoing pressure to strengthen supply chain compliance programs, particularly around forced labor and sourcing transparency. The new levies make clear that Trump is determined to overhaul world trade despite repeated court challenges. The president sees tariffs as a tool to protect U.S. industries and promote more investment in domestic manufacturing and intends to maintain a broad baseline tariff regime despite legal setbacks.

We will continue to keep you updated on developments in the Indo-Pacific as they occur. If you have any comments or questions, please contact BGA Head of Research Murray Hiebert at mhiebert@bowergroupasia.com or Managing Director for GTE Nydia Ngiow at nngiow@bowergroupasia.com.

Best regards,
BGA GTE Team

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Head of Research

Murray is a top Asia expert and skilled researcher with three decades of experience living and working in Asia. His networks in business, media and government circles are deep and wide-ranging. He is also a senior associate of the Southeast Asia Program at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Earlier he served as deputy director of the program for six years. Prior to joining CSIS, Murray served for five years as senior director for Southeast Asia at the U.S. Chamber of Commerce where he worked with leading American companies, the U.S. government and Southeast Asian ... Read More