The US will impose new tariffs of 10% to 12.5% on around 60 trading partners from Friday, framed as a response to forced-labour concerns. The duties replace an expiring temporary levy and rest on a legal footing built to withstand the court challenges that sank Trump's earlier tariffs.
The US is imposing new tariffs of 10% to 12.5% on imports from around 60 trading partners from Friday, targeting key economic partners including the UK, EU, Canada, Japan and India over claims they failed to properly stop forced labour.
A legal foundation built to survive the courts
Behind the headline rate sits the real change. The new duties rest on Section 301 of the Trade Act of 1974, a mechanism trade lawyers view as more durable than the authority the Supreme Court struck down in February. That ruling found many of Trump's globally imposed tariffs had been illegally enacted, pushing the president to seek other legal avenues for his flagship trade policy.
The levies replace a temporary 10% global tariff that expires the same day, and the new rates track it closely, so the near-term economic impact should be limited.
Who pays, and who is exempt
Under the new structure, countries with laws addressing forced labour face the lower 10% rate, while those without such statutes face 12.5%. Steel, aluminium, automobiles and auto parts are excluded, along with certain food, agricultural, fertiliser and energy products.
The tariffs cover countries the US Trade Representative's office says account for roughly 99% of US trade. Meanwhile, the White House has singled out Canadian imports, warning that goods crossing the northern border will face 50% duties.
Higher prices and retaliation loom
Economists have warned that higher tariffs can make everyday goods like coffee and microwaves more expensive, because importing companies often pass the added costs to shoppers. Business groups and affected countries are expected to push back, with many weighing legal challenges or retaliatory duties.
The US Trade Representative is also investigating 16 countries over claims of manufacturing overcapacity, which could pave the way for further duties later this year.
Sources: BBC News, investingLive
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