US Forced-Labor Tariffs Cover 99.4% of Imports — Legal Challenges Filed Immediately

A new round of US tariffs enacted under Section 301 of the Trade Act of 1974 took effect July 24, covering 60 trading partners and applying to 99.4% of US imports at rates of 10–12.5%, based on each country's enforcement of forced-labor import prohibitions. Separately, 50% tariffs on electronics, plastics, alcohol, dairy, and more than 500 Canadian product lines entered force August 19 under the previously unused Section 338 of the Tariff Act of 1930 — a mechanism not deployed in modern trade law and facing significant constitutional scrutiny. Small businesses filed legal challenges against the Section 301 tariffs on announcement day; trade law expert Scott Lincicome (Cato Institute) told NPR the legal question is genuinely open, as courts must evaluate the adequacy of USTR's forced-labor investigation — not merely whether Section 301 allows tariffs at all. Canada responded with retaliatory tariffs against US goods on August 22, per Global Sanctions reporting. Law firms advising importers, exporters, and supply-chain clients face an active front: force-majeure clause analysis, price-adjustment contract audits, and trade credit insurance assessments are all live matters.