Overview
- The Office of the United States Trade Representative announced on Friday that additional tariffs of 10% to 12.5% take effect for imports from 60 countries as a response to what it found were inadequate controls against goods made with forced labor.
- The administration shifted its legal basis to Section 301 of the Trade Act of 1974 after the Supreme Court in February struck down the prior emergency-based tariff authority.
- Country-specific treatments and exemptions moderate the impact: Argentina faces a 10% charge but keeps 1,675 products tariff-free under its bilateral reciprocity deal, Peru is set at 12.5% with listed annex exemptions, Mexico retains T‑MEC protection for covered goods while non‑T‑MEC items face a 10% levy, and steel and aluminum remain subject to a separate 50% surcharge.
- Washington’s move drew swift criticism from trading partners including the EU, Japan, Australia and China, and Mexico and the U.S. completed a third round of T‑MEC talks in Mexico City without agreement and agreed to continue negotiations.
- Two small U.S. firms have already sued to block the tariffs and markets showed immediate sensitivity, meaning further litigation, trade talks and price effects for exporters, importers and consumers are likely to shape the policy’s next steps.