Trump imposes new tariffs targeting dozens of countries

By Elisabeth Buchwald, CNN

(CNN) — Dozens of America’s trading partners, from Europe to China to India, now face new tariffs of 10% to 12.5% on goods shipped to the United States, according to the office of the US Trade Representative.

The tariffs, announced Thursday, went into effect Friday morning. Goods from the 60 affected trading partners make up 99.4% of US imports.

The timing coincides with the lapse of a 10% near-blanket duty President Donald Trump imposed earlier this year that was deemed unlawful by the Supreme Court.

“The president is not going to allow his trade policy and overall objectives to be undermined simply because one tool may be limited by a court or something else,” senior White House officials told reporters Thursday on a call previewing the actions.

The latest action follows a monthslong investigation by the US Trade Representative into the alleged use of forced labor to produce goods exported to the US and the failure by various countries to address the practice.

The European Union questioned the new tariff, with its foreign policy chief Kaja Kallas calling it a “negative surprise” and rejecting the forced labor claims as unfounded. Switzerland also opposed the allegations, while Norway said it does not plan to retaliate by imposing tariffs on American goods.

In a statement on Thursday, Brazil rejected the 12.5% ​​tariff on its goods and reiterated its call for reciprocity. And in a video on social media, Mexico’s economy minister said, “We do not see a change in the effective tariff Mexico is paying today.”

Australia, subject to a 12.5% tariff, also voiced opposition to the new tariffs. Trade Minister Don Farrell told reporters Friday that Washington’s move is “completely unjustified,” adding that Canberra would continue to lobby the US to remove all tariffs on Australian goods.

The new rates apply to imports from countries that supply nearly everything the United States buys from abroad. A variety of imports, including oil and gas, as well as products that can’t be sourced domestically, were granted exemptions, administration officials said.

The timing of the rollout was intended to “avoid complexity” that would come from layering the new levies on top of the existing 10% duties, administration officials said. They added that business leaders have been seeking more continuity and predictability around tariffs.

That marks a stark shift from a year ago when businesses were smack in the middle of Trump’s dizzying on-and-off again tariffs. “We have heard loud and clear: people want to know what tariff rate they’re going to pay,” the administration official said.

“The real message here that everyone needs to take away is the president is going to always use the tools at his disposal to achieve his trade policy objectives.”

Certain countries qualified for a lower 10% rate instead of the 12.5% rate after taking steps aimed at combating alleged forced labor. But administration officials said they were not convinced the affected countries would eliminate the practice anytime soon, and are prepared to keep the higher levies in place.

For most Americans, the change is unlikely to immediately translate into higher prices because it largely preserves duties that importers have already been paying.

That may change in the coming weeks and months, though.

There are several other pending investigations that rely on the same trade law, Section 301 of the Trade Act of 1974, being used to enact the new rates. One focuses on allegations that major trading partners — including China, Mexico and the European Union — are contributing to global manufacturing overcapacity.

Section 301 tariffs are viewed by trade experts as a more legally durable option because they have survived previous court challenges, unlike the emergency authority Trump last April used for his “Liberation Day” broader tariff regime. They can also remain in place indefinitely.

The administration is exploring additional ways to raise border taxes. Earlier this week the White House announced a 50% tariff on certain Canadian goods set to take effect next month under a never-before-used provision of the Smoot-Hawley Trade Act.

This story has been updated with additional information.

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CNN’s John Liu contributed to this report.