Trump Proposes New Tariffs on 60 Economies as White House Fights $166B Refund Order

President Donald Trump has proposed sweeping new tariffs on 59 countries and the European Union over alleged failures to combat forced labor imports, while simultaneously battling a court order that could require the administration to refund up to $166 billion in tariffs previously struck down by the Supreme Court. The dual-front trade offensive represents the administration’s most aggressive effort yet to rebuild its tariff wall after a landmark legal defeat.

New Tariffs Under Section 301

On June 2, the U.S. Trade Representative (USTR) released findings from 60 investigations launched in March, determining that every economy examined had failed to impose and effectively enforce a prohibition on importing goods made with forced labor. According to The Guardian, the proposed tariffs would impose 10% duties on 54 economies — including the UK, EU, Canada, Australia, and Taiwan — and 12.5% on six others: China, Japan, India, South Korea, Brazil, and Switzerland.

Ambassador Jamieson Greer, the U.S. Trade Representative, said in a USTR press release: “The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”

The tariffs are proposed under Section 301 of the Trade Act of 1974, a different legal authority from the IEEPA powers the Supreme Court ruled unlawful in February. A 98-page USTR investigation report found that only six of the 60 economies examined — Canada, Ecuador, the EU, Indonesia, Mexico, and Pakistan — have even imposed forced labor import prohibitions, and the report determined all six are failing to effectively enforce them.

The new tariffs are not immediately effective. Written public comments are due by July 6, with public hearings scheduled for July 7.

The $166 Billion Refund Battle

Simultaneously, the Trump administration is fighting a Court of International Trade order requiring refunds of tariffs collected under the now-invalidated IEEPA authority. The Economic Times reported that the administration formally appealed the order on Tuesday, with approximately $166 billion in revenue at stake.

U.S. Customs and Border Protection (CBP) has already processed roughly $20.6 billion in approved repayments, with $85 billion on track for processing. Over 330,000 importers could be eligible for refunds. Major companies including FedEx, Costco, Revlon, Alcoa, and Bumble Bee have filed lawsuits seeking their money back.

President Trump has described the prospect of refunds as a “complete mess” and “almost impossible for our Country to pay,” according to BBC News. He has signaled that he would view companies that do not seek refunds more favorably.

Legal and Political Context

The Supreme Court’s February 20 ruling was a landmark limitation on executive power in trade matters, finding that Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) to impose country-specific tariffs without congressional approval. Trump responded by imposing a temporary 10% global tariff under Section 122 of the 1974 Trade Act, which is limited to 150 days.

The new Section 301 forced labor tariffs represent a third legal strategy, effectively allowing the administration to bypass the Supreme Court’s IEEPA limitations by using a different statutory authority. Sector-specific tariffs on steel (50%), aluminum (50%), copper (50%), and autos (25%) remain unaffected by the court rulings.

International Reactions

The EU has pushed back sharply, stating it “fully shares” U.S. concerns about forced labor but “considers tariffs imposed on these grounds to be unjustified,” according to The Guardian. The European Commission said it expects the U.S. to respect the trade deal both sides entered into in July 2025.

The UK government emphasized its existing Modern Slavery Act compliance, with a spokesperson telling The Guardian: “The preferential access that UK businesses benefit from under our existing agreement remains in place and there is no change to the UK’s tariff rate.”

What to Watch

The appeals process over the refund order could take years, leaving hundreds of thousands of importers in limbo. Meanwhile, the Section 301 tariffs face their own public comment period and potential legal challenges from affected trading partners. The 150-day temporary tariff is also set to expire, raising questions about what framework will ultimately govern U.S. trade policy. Congress may face renewed pressure to clarify presidential tariff authority, though Trump has thus far found alternative executive avenues to pursue his protectionist agenda.