Trump Imposes New 10%-12.5% Tariffs on 60 Countries as Blanket Levies Expire
The Trump administration announced Thursday that it will impose new tariffs of 10% to 12.5% on imports from 60 trading partners, timed to take effect at 12:01 a.m. Friday just as a temporary 10% global tariff expires. U.S. Trade Representative Jamieson Greer said the new duties target countries that have failed to adequately enforce bans on goods made with forced labor, a justification built under Section 301 of the Trade Act of 1974 rather than the emergency powers law the Supreme Court struck down in February. The affected countries account for about 99.4% of all U.S. imports, including major partners like the European Union, China, Canada, Mexico, India and the United Kingdom.
Seventeen countries, including Canada, Mexico, India and the UK, will face the lower 10% rate after tightening forced-labor enforcement, while 41 other economies will face 12.5%. Oil, gas, fertilizer and goods qualifying under the US-Mexico-Canada Agreement are exempted. The move follows Trump's stopgap 10% worldwide tariff, imposed under Section 122 with a built-in 150-day expiration, after the Supreme Court ruled in February that his broader emergency-powers tariffs exceeded his authority.
Brazil has already rejected its 12.5% rate and renewed calls for reciprocal treatment. The USTR's office said it could not estimate how much revenue the new tariffs will generate, and administration officials say most Americans won't see an immediate price jump since the new rates largely mirror duties importers are already paying, though that could change in the months ahead.
What supporters say:
Trade officials argue the U.S. has enforced its own forced-labor import ban for nearly a century and that trading partners should be held to the same standard.
The new legal basis under Section 301 lets the administration keep its trade agenda intact after the Supreme Court blocked the broader emergency-powers tariffs.
Because the new rates largely match duties importers are already paying, supporters say the transition avoids an abrupt new cost shock for U.S. businesses.
What critics say:
Critics, including a small-business coalition called We Pay the Tariffs, say the forced-labor rationale covers fewer than half the countries on the Labor Department's own watch list, suggesting it's a pretext to resurrect the struck-down tariffs.
Economists note the policy still lands on close allies like Canada, Mexico, India and the UK, straining relationships with major trading partners over a labor-enforcement claim rather than trade imbalances.
Some businesses and foreign governments, including Brazil, argue the tariffs were imposed without genuine negotiation or a clear revenue estimate from the administration itself.
What's your take?
Should the Trump administration be allowed to impose these new tariffs under this forced-labor justification? Yes No
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Sources:
NPR: Trump to impose double-digit tariffs on dozens of countries
CNBC: Trump to slap 'sweeping' new tariffs on 60 trade partners
#Tariffs #TradePolicy #Economy #SupremeCourt #Trump
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