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New US Tariffs on Goods From Over 80 Countries Take Effect

Created at 29 Jul · 7:06 PM1 source↑ Market-relevant
IN SHORT

The Trump administration has implemented new tariffs, ranging from 10% to 12.5%, on goods from over 80 countries. These duties replace a previous 10% tariff that expired and are imposed under Section 301 of the Trade Act of 1974, citing concerns over forced labor practices.

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Key Numbers

80+countries affected by new tariffs
10%tariff rate for Canada, EU, India, Mexico, UK
12.5%tariff rate for Australia, Brazil, China, Japan
1974Trade Act section used for tariffs

Who's Involved

Trump administration
Imposed new tariffs on goods from over 80 countries
Donald Trump
Issued the new tariffs as part of protectionist policy
Peter Harrell
Visiting scholar at Georgetown Law School and former Biden administration official
Ron Wyden
U.S. Senator from Oregon
Alan Wolff
Senior fellow at the Peterson Institute for International Economics
New US Tariffs on Goods From Over 80 Countries Take Effect

↳ Why This Matters

These new tariffs represent a significant move by the administration to reshape global trade and protect domestic industries, potentially impacting international commerce and leading to higher costs for consumers and businesses.

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.

Frequently asked questions

The tariffs are aimed at countries that do not effectively ban imports made with forced labor, with the stated goal of leveling the playing field for U.S. businesses.

Over 80 countries are affected, including major trading partners like Canada, Mexico, China, the United Kingdom, Australia, India, and the European Union.

Tariff rates range from 10% to 12.5%, depending on whether a country has committed to and effectively enforces prohibitions on forced labor imports.

The tariffs are being imposed under Section 301 of the Trade Act of 1974.

What Happens Next

01More tariffs are likely to be proposed in the coming weeks.
02The latest tariffs are expected to face legal challenges.

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Cadence

How It Developed

The Trump administration imposed new tariffs on goods from over 80 countries.
The tariffs range from 10% to 12.5% and took effect at 12:01 a.m.
These new duties replace a global 10% tariff that expired at the same time.
The tariffs are issued under Section 301 of the Trade Act of 1974, citing concerns over forced labor.
Canada and the European Union face a 10% tariff, while countries like Australia, Brazil, China, and Japan face 12.5%.
The tariffs exempt oil, gas, certain national resources, and goods covered under the USMCA or national security tariffs.
Critics argue the tariffs are a pretext to reimpose duties struck down by the Supreme Court.
The Supreme Court previously ruled that the president lacked the authority to impose certain global tariffs without congressional approval.

Sources

T1
New U.S. Tariffs Aimed at Over 80 Countries Go Into EffectThe New York Times
T2
What to know about Trump's new tariffs on more than 80 countriestheguardian.com
T2
Trump imposes new tariffs targeting dozens of countries - CNNcnn.com
T2
New US tariffs aimed at over 80 countries go into effectomanobserver.om

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