US tariffs raise trade-finance pressure across 60 economies

The US has imposed additional tariffs on imports from 60 trading partners under a series of Section 301 investigations into their treatment of goods linked to forced labour, creating new pricing, compliance and working-capital pressures across global supply chains.

The additional duties took effect at 12.01am Eastern Time on 24 July. Goods already loaded and in final transit before that point can avoid the new charge where they enter the US before 28 July.

A 10% rate applies to goods from 18 economies, including the UK, Canada, Mexico, India, Indonesia, Malaysia and Bangladesh. USTR said these countries had introduced import restrictions, partially addressed the issue or committed to further measures through trade agreements.

Products from the EU and Taiwan are subject to duties that bring the combined most-favoured-nation and Section 301 rate to 10%. A comparable mechanism caps the combined rate at 12.5% for goods from Japan, South Korea and Switzerland. Most other investigated economies face an additional 12.5% tariff.

The measures cover most imports but contain exemptions for certain essential raw materials, goods where domestic US supply is insufficient, products whose inclusion could cause wider economic disruption and items already subject to Section 232 tariffs.

For exporters and their lenders, the immediate issue extends beyond the tariff percentage. Companies must establish product classification, country of origin and exemption eligibility before calculating the landed cost of each shipment. Unexpected duty liabilities can absorb cash, delay customs clearance and weaken margins on contracts agreed before the measures were announced.

Importers may seek longer supplier terms or additional working-capital facilities to finance the higher cost between customs entry and customer payment. Exporters could face requests to renegotiate prices, while trade-finance banks may need to reassess transaction values, documentary requirements and borrower liquidity.

The policy may also affect letters of credit and borrowing-base facilities where financed inventory or receivables are valued using assumptions made before the duties took effect. A fall in customer demand or an increase in landed costs can reduce collateral headroom even where goods remain eligible for finance.

USTR said the action followed two sets of hearings, consultation with governments and thousands of public submissions. Whatever its policy objective, the scale of the decision means forced-labour compliance has become a direct financing and cash-flow consideration for companies trading with the US.