The Trump administration has announced a new series of tariffs ranging from 10 to 12.5 percent on 60 of the United States' trading partners. These tariffs are scheduled to go into effect Friday morning, as a previous 10 percent tariff rate imposed by the administration is set to expire Thursday evening.
These latest tariffs will affect 99.4 percent of American trade, according to the White House. U.S. Trade Representative Jamieson Greer stated that the new rates are intended to penalize trading partners for failing to prohibit items produced with forced labor. The action is being taken under Section 301 of the Trade Act of 1974.
Countries such as Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom will face a 10 percent tariff rate. The European Union, Taiwan, Japan, and South Korea will see rates between 10 and 12.5 percent, while all other nations will be subject to a 12.5 percent tariff.
"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," a White House official said Thursday.
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 determined last month that certain countries were in violation of these practices, arguing that such actions harmed the U.S. economy.
Nations deemed to be partially enforcing bans on forced labor received the lower 10 percent tariff rate. Those demonstrating progress toward compliance were assigned rates between 10 and 12.5 percent. Countries found to be in noncompliance face the flat 12.5 percent rate.
Certain goods, including oil, gas, specific fertilizers, and food products, have been exempted from the new tariff rates. This exemption may be an effort to mitigate potential increases in food and energy costs ahead of the November midterm elections.
Earlier this year, the Supreme Court ruled against a previous tariff policy implemented by the Trump administration, which had relied on the Emergency Economic Powers Act for broad authority over duties. The current tariffs are being enacted under a different authority.
