Trump Imposes New Tariffs on 60 Countries

President Donald Trump imposed new tariffs ranging from 10% to 12.5% on imports from 60 countries, including major trading partners like China, the European Union, and Canada, as temporary global duties expired at midnight EDT Friday (04:01 GMT). The tariffs target goods produced with forced labor and replace a temporary 10% levy that had been in place since February. Goods in transit are exempted from these new duties until July 28.

The administration announced the measures under Section 301 of the Trade Act of 1974, which allows the president to impose import taxes against countries engaging in 'unjustifiable,' 'unreasonable,' or 'discriminatory' trade practices. U.S. Trade Representative Jamieson Greer stated that the tariffs aim to correct both a human rights abuse and distortive trade practice, improving the welfare of workers everywhere.

The new duties cover 99.4% of U.S. imports, with exemptions for oil and gas, fertilizer, certain food items, autos, steel, aluminum, copper, aircraft parts, and critical minerals. Goods that comply with the U.S.-Mexico-Canada Agreement (USMCA) are also exempted due to high levels of U.S. content in these products.

Immediate criticism came from several trading partners. European Union foreign policy chief Kaja Kallas described the new tariffs as a shock and questioned their rationale, while Australia, Brazil, Norway, and Japan criticized the tariffs as unjustified. Canada issued a muted response but expressed willingness to engage constructively with the United States on the matter.

Economists warn that the uncertainty created by these successive measures may have consequences beyond immediate trade losses, potentially undermining confidence in long-term trade relations. Brazilian President Luiz Inacio Lula da Silva called the decision unjustified, further escalating tensions. According to CNBC, several major trading partners including Australia and Japan rejected the Trump administration's justification for the new tariffs.

This latest move comes after the Supreme Court ruled against a broad swath of President Trump's previous tariffs in February. The court found that the president's use of the International Emergency Economic Powers Act (IEEPA) to impose those tariffs was unlawful, forcing the administration to pay refunds to importers who had paid under that regime.

The new forced labor tariffs are the result of a months-long investigation by the U.S. Trade Representative's office. Some countries have tightened their enforcement and qualified for lower tariff rates as a result. For example, India initially faced a 12.5% tariff but was reduced to 10% after implementing new measures against forced labor.

Two small American businesses sued the Trump administration over its new round of sweeping tariffs. The lawsuit was filed by the Liberty Justice Center, which won a U.S. Supreme Court case against the president’s tariffs earlier this year. According to CBS News, the latest tariffs will hit more than 80 countries with either a 10% or 12.5% levy, implemented under Section 301 of the 1974 Trade Act.