Trump Plans New Tariffs on 60 Economies

• US imposes 10%-12.5% duties on imports from around 60 economies, including Mexico, UK, Canada, India, Japan, South Korea, and Switzerland.
• Justification for new tariffs is alleged forced labor in supply chains, utilizing Section 301 of US trade law, which is considered a more durable legal authority after previous tariffs were struck down.
• Exemptions include fuel, foods, fertilizer imports, automobiles, energy, and pharmaceuticals, as well as countries with existing trade deals.
• The effective US tariff rate is expected to rise to about 10.7%, slightly lower than the initially proposed 11.1% due to credits for some Asian economies.
• The administration is pursuing a dual track: rebuilding the base tariff wall with tested authorities and using untested, flexible authorities for immediate threats.

The US is imposing new tariffs of 10% to 12.5% on imports from around 60 economies, including major trading partners, citing alleged forced labor in supply chains. This move follows a Supreme Court setback on previous tariffs and marks an effort to rebuild President Trump's tariff regime using different legal justifications. While broad in scope, certain sectors and countries with existing trade agreements are exempted, leading to a slightly lower overall effective tariff rate than initially proposed.