Trump expands tariffs across 60 economies

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Trump expands tariffs

Highlights

The U.S. will impose tariffs of 10% to 12.5% on imports from 60 economies.
The duties rely on a Section 301 forced-labor investigation.
Food, fuel, fertilizer, and several separately taxed industries are exempt.
Further tariffs may follow from other trade investigations.

According to Bloomberg, the administration based the measures on a Section 301 investigation into whether foreign governments adequately prevent goods produced with forced labor from entering their markets. The new tariffs take effect at 12:01 a.m. New York time on Friday, immediately after a temporary 10% global import duty expires.

New legal route for broad tariffs

Imports from Mexico, Canada, the United Kingdom, and India will generally face a 10% levy. The same rate will apply to goods from several other economies that Washington says have introduced forced-labor restrictions but do not enforce them sufficiently.

Products from Japan, South Korea, and Switzerland will be broadly capped at 12.5%. Tariffs on imports from the European Union and Taiwan will not exceed 10%, reflecting trade agreements previously reached with Washington. Dozens of other economies will face the higher 12.5% rate. Some existing duties may be added on top.

The Office of the U.S. Trade Representative launched the investigations in March and concluded that the policies of 60 economies burdened or restricted U.S. commerce. USTR said 54 lacked both adequate import bans and enforcement, while six had restrictions that were not effectively applied.

The use of Section 301 gives the administration a more established legal foundation than the emergency authority behind earlier tariffs overturned by the Supreme Court. The process required an investigation, public comments, and hearings before duties could be imposed.

Exemptions limit the immediate reach

Fuel, food, and fertilizer will be exempt, along with automobiles, metals, and medicines already covered by separate industry tariffs. Goods that comply with the North American trade agreement will also remain outside the new duties.

Products already loaded onto ships before the deadline will not be affected. The administration may grant further exemptions for goods unavailable from U.S. producers or where tariffs could cause wider economic disruption.

The structure allows Trump to restore a broad tariff floor without abandoning agreements with major partners. It also leaves room for additional country-specific measures and future tariffs tied to excess industrial capacity.

Higher costs and more trade uncertainty

The main risk falls on American importers, which formally pay tariffs at the border and may pass part of the expense to businesses and consumers. The measures arrive less than four months before the congressional elections, when high energy and food prices are already increasing political pressure over the cost of living.

The overall tariff burden may initially remain close to current levels because the new duties replace an expiring 10% levy. The larger concern is that future tariffs could be added to the new structure, increasing inflation risks and weakening investment as companies struggle to forecast costs.

Governments across Asia and the Pacific rejected Washington’s justification but avoided immediate retaliation. Australia called the measure unjustified and inconsistent with its trade agreement, while New Zealand expressed disappointment. Singapore said the tariffs lacked an economic basis, and Japan sought assurances that the new duties would respect its existing agreement with the U.S.

Earlier, we reported that Trump moves ahead with 50% tariffs on select Canadian goods.

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