The Trump administration has enacted new tariffs of 10% to 12.5% on imports from over 80 nations, including the European Union, Canada, and China. These new levies, which took effect at 12:01 a.m. Friday, replace a temporary 10% worldwide tariff that expired simultaneously. The previous temporary tariff was imposed under Section 122 of the Trade Act of 1974 for 150 days, after the Supreme Court struck down earlier, larger tariffs in February. The new tariffs are being justified by the administration as a measure against forced labor practices globally.
The new tariffs apply to countries based on their perceived enforcement of bans on forced labor. Nations with laws against forced labor imports, such as India, Pakistan, and Argentina, face a 10% tariff. Countries without such laws, including China and the United Kingdom, are subject to a 12.5% tariff. The new duties are imposed under Section 301 of the Trade Act of 1974, a different legal authority than the previous ones, which were based on the International Emergency Economic Powers Act (IEEPA) and later Section 122.
Several trading partners have expressed strong disapproval. Japan's Chief Cabinet Secretary, Minoru Kihara, called the tariffs "regrettable," while Australia's Trade Minister, Don Farrell, deemed them "completely unjustified." New Zealand Prime Minister Christopher Luxon described the decision as "extremely disappointing," stating that the U.S. investigation lacked meaningful evidence regarding forced labor claims. Experts like Erica York of the Tax Foundation and Jason Miller of Michigan State University suggest that the forced labor rationale may be a cover to reimpose tariffs after the Supreme Court's decision, given how closely the new regime resembles the struck-down tariffs. The tariffs are expected to impact 60 trade partners and cover 99% of U.S. imports.
