Key facts
- President Donald Trump is imposing new tariffs of 10%-12.5% on imports from over 80 countries.
- The new tariffs replace expiring temporary levies and target forced labor enforcement.
- A separate 25% tariff is being imposed on Brazil for alleged unfair trade practices.
- The tariffs are being implemented under Section 301 of the Trade Act of 1974.
- Products like oil, gas, and fertilizers are exempt from the new tariffs.
President Donald Trump has imposed new tariffs ranging from 10% to 12.5% on imports from over 80 countries, replacing temporary levies that were set to expire. The move, announced Thursday, targets nations accused of not adequately enforcing bans on goods produced through forced labor.
These new, longer-term tariffs are being implemented under Section 301 of the Trade Act of 1974, which allows the president to impose duties on imports and other sanctions against countries engaging in practices deemed "unjustifiable," "unreasonable," or "discriminatory." This action follows the Supreme Court's ruling that invalidated Trump's broader tariff policy enacted under the International Emergency Economic Powers Act (IEEPA), which had compelled the administration to issue refunds to importers.
Separately, the Trump administration is imposing a 25% tariff on Brazil due to alleged unfair trade practices. The U.S. Trade Representative's office has also initiated an investigation into 16 countries, representing 70% of U.S. imports, for potential overproduction that could disadvantage American companies globally.
While the new tariffs aim to bolster U.S. manufacturing, trading partners like Australia and New Zealand have voiced strong objections, deeming the measures unjustified and harmful. The Bank of France governor, Emmanuel Moulin, noted that these tariffs add uncertainty to the global economy. Exemptions from the new tariffs include products such as oil, gas, and fertilizers, as well as items that qualify for duty-free status.