The Trump administration has implemented new tariffs ranging from 10% to 12.5% on imports from 60 countries, accounting for 99% of US imports. These tariffs, effective Friday, July 24, 2026, replace temporary 10% worldwide tariffs that expired, taking effect at 12:01 AM Washington DC time. The previous temporary tariffs were imposed under Section 122 of the Trade Act of 1974 for 150 days, after the Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in February.
The new levies are imposed under Section 301 of the Trade Act of 1974 and target countries accused of inadequately enforcing bans on goods produced by forced labor. Countries with laws against importing products made with forced labor, such as India, Pakistan, and Argentina, face a 10% tariff, while nations without such laws, including China and the United Kingdom, are subject to a 12.5% tariff. Algeria was also specified as one of the affected economies.
Market reactions have shown a "risk-off" tone. While the Dow Jones Industrial Average rose by 0.46% (235.6 points) to close at 51,947.25, the S&P 500 increased slightly by 0.05% (3.68 points) to 7,411.98. The Nasdaq Composite, however, lost 0.64% (161.87 points) to end the day at 24,975.82. The VIX, or "fear index," eased by 0.59% to 18.59. Equity markets are under pressure due to concerns about higher trade barriers affecting global growth and corporate earnings. Despite a defensive environment, gold and silver traded weaker as the stronger US dollar offset traditional safe-haven demand.
Several import-dependent companies saw gains, with Walmart Inc. up 0.63% to $109.08, Apple Inc. up 3.71% to $333.58, Nike Inc. up 2.06% to $41.82, and General Motors Co. up 3.10% to $83.23. Caterpillar Inc. was down 0.083% to $892.52. This suggests investors might believe the new tariff rates are manageable or already factored into corporate planning, as large businesses may be better equipped to adjust supply chains and negotiate with suppliers.
Further, the Trump administration announced an investigation into the European Union under Section 301, with potential tariffs, in response to the EU fining American technology companies. This new tariff package impacts an estimated 60 countries and economies, covering approximately 99.4% of total US trade, and signals a broader use of trade policy to address alleged forced labor practices. These tariffs are separate from existing steel and aluminum duties and come alongside other trade actions against Brazil and Canada.
