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๐Ÿ‡ฎ๐Ÿ‡น Italy /Economy & Trade

Trump imposes new tariffs between 10% and 12.5% on over 60 countries

From ANSA · () Italian

Translated from Italian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • The U.S. is imposing new tariffs of 10% to 12.5% on over 60 trading partners, effective Friday.
  • These tariffs aim to counter alleged forced labor practices, replacing previous temporary measures.
  • The move utilizes a stronger legal basis under Section 301 of the Trade Act of 1974, following a Supreme Court ruling that invalidated earlier tariffs.

The United States has decided to implement new tariffs, ranging between 10% and 12.5%, on more than 60 trading partners, effective Friday. The Trump administration's initiative aims to combat alleged forced labor practices, replacing temporary global tariffs that were set to expire.

According to Jamieson Greer, U.S. Trade Representative, these measures are the result of a wide-ranging investigation. The Financial Times reports that key U.S. trading partners, including Japan, South Korea, India, and Canada, along with the EU and the UK, are among those affected. China and Brazil are also reportedly included in the investigation.

The new tariffs will impact over 99% of American trade. Countries with laws to combat forced labor will face a 10% duty, while those lacking such legislation will be charged an additional 2.5%, bringing their total tariff to 12.5%. These duties will come into effect simultaneously with the expiration of the previous temporary tariffs.

Goods already subject to specific national security tariffs, such as steel, aluminum, and automobiles, will not be affected by these new measures. The administration is leveraging Section 301 of the Trade Act of 1974, a provision considered legally more robust than the basis for the tariffs previously overturned by the Supreme Court.

Exemptions will also apply to oil, gas, and fertilizers, as well as other goods not produced in the United States. Countries that show progress in fighting forced labor may see their tariffs reduced to 10%. India, for example, was reportedly granted this lower rate after passing a law against forced labor, correcting an initially planned 12.5% tariff. However, the U.S. currently believes that countries under investigation do not adequately protect workers, regardless of existing legislation, a stance that observers suggest could spark new legal disputes.

The tariffs on forced labor will restore fairness in the global market for American workers and push U.S. trading partners to join the United States in eliminating forced labor from global supply chains.

โ€” Jamieson GreerJamieson Greer, U.S. trade representative, explained the rationale behind the new tariffs.
DistantNews Editorial

Originally published by ANSA in Italian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.