New Tariffs Now Cover 99.4% of U.S. Imports — Here's How to Protect Your Budget

The Office of the U.S. Trade Representative announced on Thursday that new tariffs under Section 301 of the Trade Act of 1974 now cover 60 economies, representing 99.4% of American imports, a shift that could ripple through prices on everyday goods for households across the country.

How It Works

The new tariff structure replaces a temporary 10% global tariff that had been imposed under Section 122 of the trade act, which is set to expire July 24. That earlier tariff was tied to emergency powers the Supreme Court ruled unlawful in February, forcing the administration to rebuild its trade enforcement on firmer legal footing using Section 301 instead.

Under the new framework, trading partners are split into two tiers. Partners that have adopted or committed to import prohibitions related to forced labor face a 10% tariff. Partners that have not made that commitment face a higher 12.5% tariff. Because the policy touches the top 60 U.S. trade partners, it effectively covers 99.4% of everything Americans buy from abroad.

Some countries face steeper, individualized treatment. Brazil is dealing with a separate 25% Section 301 tariff imposed this month, which combines with other measures to rebuild a 37.5% barrier on Brazilian goods, close to the 50% rate that was struck down as unlawful last year. Canada, by contrast, was placed in the lower 10% tier, with an exemption for goods that comply with USMCA rules. New Zealand negotiated an exemption covering roughly 30% of its U.S.-bound exports, including beef and kiwifruit.

Officials from Australia, Canada, and Brazil have all publicly responded to the announcement, including Australian Trade Minister Don Farrell, Canada's Minister for Canada-U.S. Trade Dominic LeBlanc, and Brazilian President Luiz Inácio Lula da Silva. So far, no major trading partner has announced countermeasures over the forced-labor tariffs, though researchers at the Peterson Institute for International Economics continue to track how the policy could reshape trade flows and consumer costs.

Who's Affected

• Households that regularly buy imported goods, including clothing, electronics, food products, and household items sourced from any of the 60 covered economies
• Small business owners and freelancers who import inventory, materials, or components as part of their supply chain
• Anyone purchasing goods from Brazil, which now faces a combined 37.5% tariff burden
• Consumers buying Canadian goods that do not meet USMCA compliance standards, since only compliant goods qualify for exemption from the 10% tier
• Buyers of New Zealand beef and kiwifruit, which fall within the roughly 30% of exports still exempted

Here's How to Protect Your Budget

1. Review your last three months of spending and flag categories most likely to include imported goods, such as electronics, apparel, appliances, and packaged food.
2. Check product labels or ask retailers about country of origin before making large purchases in the coming weeks, since goods from the higher 12.5% tier may see price adjustments sooner.
3. If you regularly buy Canadian goods, ask whether they qualify as USMCA-compliant, since compliant items are exempt from the new 10% tier.
4. Build or top up a short-term cash buffer specifically earmarked for price volatility on essentials, separate from your regular emergency fund.
5. If you run a business that imports materials or inventory, contact your suppliers now to understand which tariff tier applies and whether costs will be passed along immediately or phased in.
6. Delay large discretionary purchases of imported durable goods, like electronics or furniture, until you have confirmed whether tariff-related price increases have already been applied at the retail level.
7. Follow analysis from the Peterson Institute for International Economics and other trade-policy trackers for updates on how the tariff structure is affecting specific product categories.

Real-World Example

Consider a small business owner in Texas who imports parts for a home-goods line from a country that falls into the higher 12.5% tier rather than the lower 10% tier. Because that country has not adopted or committed to the forced-labor import prohibitions required for the lower rate, every shipment now carries a 2.5 percentage point higher tariff than it would if the country qualified for the 10% tier. For a business ordering regular container shipments, that gap compounds across each order, making it worthwhile to ask suppliers directly which tier applies and whether alternative sourcing from a lower-tier country might reduce long-term costs.

A household buying Canadian maple syrup, lumber, or packaged foods, meanwhile, may see little to no change if those goods qualify as USMCA-compliant, since they are exempted from the 10% tier altogether. The practical difference between these two examples is entirely dependent on documentation and country-of-origin rules, which is why checking labels and asking retailers matters more now than it did before this announcement.

Why Act Now

The prior Section 122 tariff expires July 24, meaning the new Section 301 structure is taking over trade policy in real time rather than as a future proposal. Because it covers 99.4% of American imports across 60 economies, very few households will be entirely insulated from some level of exposure. The Brazil situation shows how quickly rates can escalate, moving from a rate close to 50% that was struck down last year to a rebuilt 37.5% barrier through a newly imposed 25% Section 301 tariff. That kind of rapid adjustment underscores why waiting to see how prices settle is riskier than reviewing your spending and supply exposure today. With no major partner having yet announced countermeasures, the situation remains fluid, and consumers who get ahead of potential price changes now will have more flexibility than those who wait until shelf prices shift.

Frequently Asked Questions

Q: How many countries are affected by the new tariffs?

A: The tariffs apply to 60 economies, which together represent 99.4% of American imports.

Q: What are the two tariff rates under the new structure?

A: Partners that have adopted or committed to import prohibitions face a 10% tariff, while partners that have not made that commitment face a 12.5% tariff.

Q: Why is Brazil facing a higher combined tariff rate?

A: Brazil was hit with a separate 25% Section 301 tariff this month, which combines with existing measures to rebuild a 37.5% barrier, close to the 50% rate that was struck down as unlawful last year.

--- **Sources** • [CNBC Economy](https://www.cnbc.com/2026/07/24/trump-global-tariffs-trade-imbalance-forced-labor.html)