What to know about Trump’s new tariffs on more than 80 countries | Trump tariffs
Just before a temporary tax on global imports expires, the Trump administration late Thursday issued a new wave of tariffs ranging from 10% to 12.5% to more than 80 countries. The new tariffs will come into force on Friday morning.
It’s Donald Trump’s latest effort to continue imposing global tariffs without congressional approval, despite a Supreme Court ruling in February that found the US president unlawfully used executive authority to implement global trade policies. Trump has long argued that the United States pays more than its fair share of tariffs and that increasing tariffs is necessary to increase American production and jobs.
Here’s what you need to know about Trump’s latest tariffs.
Which countries are affected?
The United States’ largest trading partners, including Canada, Mexico and China, were among more than 80 countries to face the latest round of tariffs. The United Kingdom, Australia, India and the 27 countries that make up the European Union will also be affected.
According to the U.S. trade representative’s office, all of these countries were investigated for their labor practices, apparently to determine whether they were effectively blocking the importation of goods produced with forced labor into the United States.
How much will they have to pay?
These countries will be subject to either a 10 percent or 12.5 percent tax.
The U.S. trade representative said trading partners that would be subject to the 10% tariff are those “committed to adopting and effectively enforcing forced labor import bans.” This includes Canada, the European Union, India, Mexico and the United Kingdom. Those “that have not adopted a forced labor import ban,” including Australia, Brazil, China and Japan, will be subject to a 12.5% tariff rate.
What did the Supreme Court decide about tariffs?
In February, the high court ruled 6-3 that the 1977 law Trump invoked a year ago was not a sufficient legal justification for the president’s “Emancipation Day” tariffs. The law was designed to give the president more authority to regulate international trade during national emergencies, but the court said Congress has the sole authority to enact it in times of peace.
“And they gave Congress ‘merely…access to the public’s pocket,’” the majority opinion reads. “The Framers did not cede any portion of taxing authority to the executive branch.”
Are the latest tariffs legal?
Even after the high court found that most of Trump’s tariffs were illegal, the administration signaled that they were committed to finding an alternative solution to make the tariffs permanent. Trump immediately issued a 150-day 10% global tariff under Section 122 of the Trade Act of 1974, following the court’s decision, which is scheduled to expire at 12:01 a.m. on July 24.
The latest tariffs fall under Section 301 of the 1974 Trade Act, which was used sparingly before Trump’s presidency. This allows the president to impose tariffs if the U.S. trade representative conducts the necessary investigations and finds sufficient evidence of unfair business practices affecting American commerce.
The latest tariffs are likely to be challenged in court. Alan Wolff, a senior fellow at the Peterson Institute for International Economics and a former deputy director general of the World Trade Organization, wrote in an analysis Thursday that “the new tariffs would represent another presidential overreach.”
“If they are challenged in court, the high court will likely overturn them,” he added.
How did the tariffs affect Americans?
The New York Federal Reserve estimates that 90% of the economic burden from tariffs is passed on to U.S. consumers and businesses, even though the Trump administration claims they benefit Americans.
The tariff policy also appeared unpopular among many Americans, including Republicans. A recent survey by Harris Poll found that 72 percent of Americans believe tariffs have a negative impact on consumers, including 64 percent of Republican voters.
But for some American small businesses, tariffs are no longer a problem compared to other pressing concerns about the economy, including high costs and artificial intelligence. Since the high court ruling in February, the government has also refunded tens of billions of dollars of tariff revenue to companies.
