US President Trump Imposes New Tariffs on 60 Countries - What Now Applies

60 Countries Affected: Trump Imposes New Tariffs – What Now Applies

Some tariffs are expiring while the next ones are already waiting in the wings: US President Trump has imposed new tariffs of up to 12.5 percent on imports from 60 countries. Here is what the measures are based on and what they mean.

Following the expiration of the global US tariffs that had been in effect for 150 days, US President Donald Trump is launching his next attempt to push through his trade policy. This time, 60 trading partners of the United States are affected.

What new tariffs has the US government announced?

According to its own statements, the US government concluded after a weeks-long investigation that approximately 60 trading partners allegedly do too little to combat forced labor. Right on time with the expiration of the legal timeframe for Trump's previous global tariffs, his trade representative Jamieson Greer announced new duties on imports from these trading partners: a tariff rate of 10 and 12.5 percent respectively. The previous global tariffs stood at 10 percent. According to US statements, the new tariffs affect 99.4 percent of all imports.

The European Union is now listed alongside Taiwan, Japan and Switzerland as a trading partner for which both rates apply to imports of certain products into the US. According to US statements, the tariff rate also depends on whether trading partners effectively enforce bans on goods made with forced labor. The EU, in the US view, is not acting decisively enough in this regard.

When do they take effect?

According to US statements, the tariffs apply as of today at 6:01 a.m. German time (midnight US Eastern time). From Trump's perspective, the new tariffs come just in time to compensate for the loss of the global tariffs, for which he would no longer have had a legal basis.

The US government could only levy those for a maximum of 150 days – meaning they would have ended on Friday. Since February 24, the US had demanded a ten percent tariff on most imports from abroad. Trump had announced these in rapid succession after the Supreme Court struck down large parts of his previous tariffs.

Which products are affected?

The tariffs apply to nearly all imports – with certain exceptions. These apply primarily to products that are already subject to other tariffs, such as steel and aluminum. Oil and gas are also not affected, according to a US official. Additional exceptions apply to goods that had already been loaded onto a ship beforehand.

What is the legal basis?

The new tariffs are based on the same trade law from 1974 that the administration had already drawn upon for its temporary global tariffs. Rather than relying on Section 122, Trump is now invoking Section 301, which gives the government the ability to act in cases of demonstrably "unjustifiable, unreasonable, or discriminatory" trade practices.

Unlike some of Trump's previous approaches to imposing tariffs, this legal instrument is not a novelty in the United States. It requires that the government first conduct investigations, solicit comments and hold hearings. The trade representative stated that he had "received, reviewed and analyzed more than 1,600 written submissions regarding the proposed countermeasure," according to the announcement. In addition, more than 100 witnesses had testified and answered questions at public hearings.

What reactions have there been?

The announcement of the new tariffs was immediately met with criticism in numerous affected countries. The EU Commission expects the United States to honor the trade agreement concluded last year, despite the new tariffs. "The EU has already fulfilled its part of the deal," said a spokesperson for the Brussels authority. "We will continue to engage with the US government to ensure that the United States fully meets its obligations."

Canada announced it would examine possible countermeasures should the tariffs take effect as planned. Criticism also came from Switzerland, Japan and Chile, among others. Many countries sharply rejected the accusation that they were not doing enough to combat forced labor. The allegations that the EU was not adequately addressing forced labor were unfounded. "That cannot be said of the European Union," declared EU foreign policy chief Kaja Kallas.

"These tariffs are unjustified and contradict our free trade agreement," said Australia's Trade Minister Don Farrell. They must be abolished, Farrell said. Brazil described the tariffs as "arbitrary and unjustified" and announced it would activate its reciprocity law, which could enable retaliatory tariffs. The country also intends to file a complaint with the World Trade Organization (WTO).

Democratic US Representative Richard Neal spoke of a pretextual justification for a tariff policy based on questionable legal foundations.

And what about EU exports to the US?

For most imports from the EU, a tariff of up to 15 percent continues to apply. This refers to the bilateral trade agreement between the EU and the US, also known as the "Turnberry Deal." EU Commission President Ursula von der Leyen and Trump had agreed on it to avert a looming trade war.

Brussels made further concessions in the process, such as the abolition of EU tariffs on US industrial goods. Given the impulsive policymaking under Trump, the EU also built in a safety net: should the US fail to fully implement its commitments or suspend agreements, the EU's concessions can likewise be suspended.

How do experts assess Trump's tariff policy?

Experts and economists take a critical view of Trump's approach. "The unprecedented and chaotic tariff policy of the Trump administration (...) has caused serious damage to the US economy," stated an analysis by the think tank Center for American Progress. The reason cited was the scope of the tariffs and "their often impulsive implementation."

The tariffs had often led neither to new trade agreements nor to improved market access for American exporters, said Ryan Mulholland of the Center for American Progress. Mulholland criticized the fact that the United States' trade deficit stood at 77.6 billion US dollars in May — 41 percent higher than at the time the tariffs were announced.

Experts assume that it is primarily Trump's own compatriots who bear the burden. The nonpartisan think tank Tax Foundation estimates that US households will shoulder an additional burden of an average of 700 US dollars this year due to the tariffs. The Tax Policy Center puts the burden even higher at 960 dollars.

What is the current situation regarding EU exports?

So far, Washington has been adhering to the agreement in most cases, according to Brussels sources. Tariffs of no more than 15 percent have applied to around 93 percent of EU exports to the United States, an EU official said. However, the rate is higher for the remaining products: this applies, for example, to cheese, which is effectively taxed at just under 25 percent.

According to the EU official, exports to the US have not suffered particularly. The impact of the tariffs imposed by the US is not really being felt. While there have been "significant fluctuations," the official said, no major effects have been observed, with the exception of certain sectors such as the automotive industry.

With information from dpa, Reuters and AFP.