Trump slaps new tariffs on 60 nations as trade regime shifts

The Trump administration announced a new round of tariffs on 60 trading partners Thursday, with rates as high as 12.5%, just hours before a set of temporary import taxes was set to expire. The move, under Section 301 of the Trade Act of 1974, marks the latest effort by the White House to find durable legal footing for its trade agenda after the Supreme Court struck down the use of emergency powers for tariffs earlier this year.

Why the new tariffs were needed

The tariffs take effect at 12:01 a.m. ET on Friday, precisely when temporary duties imposed under Section 122 of the Trade Act were due to expire. Those 10% tariffs, enacted in February after the Supreme Court’s ruling, were limited to 150 days and could not be renewed without congressional approval. The administration faced a hard deadline, prompting U.S. Trade Representative Jamieson Greer to launch a Section 301 investigation in March into whether trading partners had failed to effectively block goods made with forced labor. In June, USTR concluded that such practices unfairly burdened U.S. commerce, clearing the way for the new tariffs.

How the tariffs work

The tariffs target countries that, according to USTR, have not adequately enforced bans on forced labor. Goods from nations that have adopted but are not effectively enforcing such bans will face a 10% rate. Others, deemed non-compliant, will be subject to 12.5%. A senior administration official noted that India had taken steps to prohibit trade in forced-labor goods since the tariffs were proposed, qualifying it for the lower rate. This, the official said, demonstrates that countries can earn more favorable treatment by changing their policies. Certain products, including oil and gas, fertilizers, and some food items, are exempt to avoid economic disruption.

The broader trade war landscape

This week has been one of the busiest for the Trump trade agenda. Earlier in the week, the administration imposed new tariffs on Brazil and issued fresh threats against Canada. The new Section 301 tariffs represent a shift away from the president’s preferred tool, the International Emergency Economic Powers Act (IEEPA), which the Supreme Court ruled in February did not authorize import duties. IEEPA had functioned as an on-off switch, allowing rapid changes, while Section 301 requires a formal investigation, public comment, and an official finding—a slower, more procedural approach.

What’s next

The administration’s rapid pivoting from one legal authority to another signals its commitment to maintaining tariff barriers despite legal setbacks. The new tariffs are expected to face scrutiny, but the White House believes the Section 301 process provides a more defensible basis. Meanwhile, trading partners are likely to respond, and the administration must now manage the consequences of a broader, more permanent tariff regime. The coming months could see further trade actions as the White House continues to reshape the legal foundation of its trade policy.