Key facts
- The U.S. has imposed new tariffs on goods from approximately 60 countries.
- Tariff rates range from 10% to 12.5%.
- China faces a 12.5% tariff, while India, Malaysia, Bangladesh, and Cambodia face a 10% tariff.
- These new tariffs are intended to replace previous ones invalidated by the Supreme Court.
- The administration is using Section 301 of the Trade Act of 1974 for these new measures.
The U.S. has reintroduced tariffs on goods from approximately 60 countries, with rates varying between 10% and 12.5%. This action marks an effort to reinstate President Donald Trump's trade policies after legal challenges led to the annulment of previous import taxes.
Previously, the U.S. Treasury had benefited from significant revenue generated by Trump's tariffs. However, these levies were invalidated by the Supreme Court in February. Temporary tariffs, initially set at 10% and imposed under Section 122 of the Trade Act of 1974, were set to expire on July 24, having been authorized for only 150 days.
To replace the lost revenue and re-establish a more permanent trade barrier, the administration is now leveraging Section 301 of the same 1974 trade law. This section permits the president to impose tariffs and sanctions on countries deemed to engage in unfair trade practices. Trump had previously utilized Section 301 against China, and similar measures are now being rolled out again.
Trade attorneys and analysts anticipate that the administration will successfully transition from the expiring temporary tariffs to these new, more durable Section 301 tariffs before the July 24 deadline. While previous broad tariffs had modest impacts on economic growth and prices, they did generate substantial government revenue until their annulment.