President Trump has introduced new tariffs on 60 trading partners, ranging from 10% to 12.5%, citing forced labor practices under Section 301 of the Trade Act.
Key facts
- •The new tariffs affect 99.4% of all American imports.
- •Countries with prohibitions on forced labor face a 10% tariff, while others face 12.5%.
- •The policy replaces a 10% baseline tariff that expired on July 24.
- •The administration is using Section 301 of the Trade Act to avoid the legal vulnerabilities that led to the Supreme Court striking down previous duties.
- •Market analysts suggest the tariffs may now be viewed as a structural drag on global growth.
President Donald Trump has launched a new series of tariffs targeting 60 trading partners, including the European Union, China, the U.K., and Canada. The measures, which took effect at 12:01 a.m. ET on Friday, replace a previous 10% baseline tariff that expired on July 24. These new duties range from 10% to 12.5% and are being implemented under Section 301 of the Trade Act of 1974.
By the numbers
Legal Framework and Implementation
The administration is utilizing Section 301 of the Trade Act of 1974 to implement these tariffs, citing alleged forced labor practices. This follows a February Supreme Court ruling that declared previous duties illegal. Under the new policy, countries that have adopted or committed to prohibitions face a 10% duty, while those that have not are subject to a 12.5% charge. These levies apply to 99.4% of American imports.
Market and Economic Impact
Analysts suggest these tariffs represent a shift toward a more permanent economic policy rather than a short-term negotiating tactic. Investors are bracing for a potential low-growth, high-inflation environment, compounded by global supply chain bottlenecks and rising energy costs. With oil prices recently exceeding $100 a barrel due to ongoing conflict in the Middle East, market experts note that the Federal Reserve may now consider interest rate hikes later this year.
Timeline
- FebruaryThe Supreme Court ruled that previous administration duties were illegal.
- April 2025The administration announced sweeping 'liberation day' levies.
- July 24The stopgap 10% baseline tariff expired.
- FridayThe new tariff regime took effect at 12:01 a.m. ET.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by CNBC Europe.
