The Trump administration has announced a new series of tariffs targeting approximately 60 of its trading partners, with rates set to take effect Friday morning. These new tariffs, ranging from 10 to 12.5 percent, will impact an estimated 99.4 percent of total American trade.
The tariffs are being implemented under Section 301 of the Trade Act of 1974, a different authority than previously utilized. U.S. Trade Representative Jamieson Greer stated that the tariffs are intended to penalize countries for failing to prohibit the importation of goods produced with forced labor. "Ambassador Greer is taking action, at President Trump’s direction, under Section 301 of the Trade Act of 1974 by imposing tariffs on 60 trading partners for their failure to adopt and effectively enforce a prohibition on the importation of goods produced with forced labor," an official statement from Greer's office explained.
A White House official commented on the administration's approach, stating, "The real message here that everyone needs to take away is the President is going to always use the tools at his disposal to achieve his trade policy objectives."
Greer initiated an investigation in March to assess whether U.S. trading partners were adequately preventing goods made with forced labor from reaching American consumers. The U.S. Trade Representative's office concluded last month that several countries were in violation of these standards, asserting that such practices negatively impact the U.S. economy.
Countries that demonstrated efforts to enforce forced labor bans received a lower tariff rate of 10 percent. Those working towards compliance were subjected to rates between 10 and 12.5 percent, while countries deemed non-compliant will face the full 12.5 percent rate. Among the nations listed to receive a 10 percent tariff are Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom. The European Union, Taiwan, Japan, and Korea will be subject to rates between 10 to 12.5 percent.
Certain goods, including oil and gas, specific fertilizers, and food products, have been exempted from these new tariff rates. This exemption may be an effort to prevent potential increases in food and gas costs ahead of the November midterm elections.
This move follows a previous tariff policy from the Trump administration that was invalidated by the Supreme Court earlier this year. The court had ruled against the prior policy, which had relied on the Emergency Economic Powers Act for broad authority over duties.