Key facts
- New tariffs ranging from 10% to 12.5% have been imposed on goods from over 80 countries.
- The duties are intended to address concerns about goods produced with forced labor.
- These tariffs replace a previous 10% global tariff that has now expired.
- The tariffs are enacted under Section 301 of the Trade Act of 1974.
- Canada and the European Union will face a 10% tariff, while others like China and Japan will face 12.5%.
The Trump administration has enacted new tariffs on goods imported from over 80 countries, with rates ranging from 10% to 12.5%. These duties, which took effect early Friday, replace a previous 10% global tariff that expired simultaneously. The administration stated the tariffs are aimed at countries that fail to effectively ban imports produced with forced labor, thereby disadvantaging U.S. businesses.
Canada and the European Union will face a 10% tariff, as they have made commitments to adopt forced labor import prohibitions. Countries such as Australia, Brazil, China, and Japan will be subject to a 12.5% tariff for not adopting such prohibitions. The tariffs are being implemented under Section 301 of the Trade Act of 1974.
Critics, however, suggest that the forced labor issue is being used as a pretext to reimpose tariffs that were previously struck down by the Supreme Court. In February, the Supreme Court ruled that the president lacked the executive authority to implement certain global trade policies without congressional approval. Despite this, the administration has signaled its intent to find alternative legal avenues for imposing tariffs.
Exemptions from the new tariffs include oil and gas, certain national resources, and goods already covered by the United States-Mexico-Canada Agreement or existing national security tariffs. Further tariffs are anticipated in the coming weeks.