Overview
- The White House put tariffs of 10 percent or 12.5 percent into effect for imports from 60 countries after a temporary 10 percent global duty expired on Friday, covering about 99.4 percent of U.S. imports with specific product carve outs and a short transit exemption.
- The administration based the action on Section 301 of the Trade Act of 1974 after the Supreme Court struck down its earlier emergency tariff scheme, a shift intended to make broad duties more legally durable.
- USTR created a two‑tier system that assigns the lower 10 percent rate to countries with forced‑labor prohibitions or commitments and a 12.5 percent rate to others, while exempting items such as oil, gas, fertilizer, some foodstuffs and goods already subject to other sectoral tariffs.
- Trading partners and business groups protested and have lodged legal challenges, and U.S. firms and advocacy groups have already filed suits in trade court contesting the blanket, countrywide determinations.
- The tariffs are likely to raise consumer costs modestly, add supply‑chain uncertainty and may be followed by further duties from a separate Section 301 'Excess Capacity' probe of 16 economies that remains open.