New Legal Basis: USA Announces New Tariffs Against 60 Trade Partners
Overview of the New Tariffs
In a significant shift in U.S. trade policy, President Donald Trump has reaffirmed his commitment to import tariffs just before an interim solution for existing global tariffs expires. This new framework, which imposes tariffs between 10% and 12.5%, is set to take effect for dozens of U.S. trade partners, including certain goods from the European Union. Announced by the U.S. Trade Representative’s office, this decision aims to generate income from tariff collection while addressing concerns about unfair trade practices.
Background: Legal Challenges and New Strategies
Earlier this year, the Supreme Court invalidated a broad range of import tariffs established by the Trump administration, ruling that they exceeded presidential authority. In response, Trump indicated the need for new avenues to implement tariffs, which have reportedly been identified. Beginning early Friday morning, the new tariffs will target specific imports, although shipments already on their way or cleared before July 28 will be exempt.
The review process for determining the appropriate tariff rates has suggested either 10% or 12.5%, varying by the trade partner. Countries affected include not only the European Union but also Taiwan, Japan, and Switzerland, with potential exemptions on certain imports.
Same Law, Different Sections
With the expiration of the current global tariffs’ legal framework, the administration is utilizing Section 122 of the Trade Law from 1974, which permits tariffs of up to 15% for a maximum of 150 days. After this period, Congressional approval would be necessary, a task made more daunting by the current inflationary environment.
The Supreme Court’s ruling mandated the return of billions in incorrectly collected tariffs, making the need for a new legal justification imperative. The administration has opted to invoke a different provision, Section 301, which allows the government to act against “unjustified, unreasonable, or discriminatory” trade practices.
Focus on Forced Labor Concerns
Trump’s trade representative, Jamieson Greer, hinted at forthcoming consequences related to forced labor imports. Recent statements indicated impending tariffs against 60 economies, citing their failure to sufficiently combat imports linked to forced labor. The groundwork for these tariffs relies on prior investigations, a protocol that has been followed in recent tariff announcements regarding Brazil.
Uncertainty Surrounding EU Relations
Historically, most imports from the EU faced tariffs capped at 15%, under a bilateral agreement established to avert trade wars. In August 2025, significant concessions were made, yet the unpredictable nature of Trump’s trade policy has prompted the EU to build in safeguards. Should the United States fail to meet its commitments, the EU may escalate tariffs once again.
Despite some consistency in tariffs, approximately 93% of EU exports to the U.S. have maintained this 15% cap, while specific items, such as cheese, incur much higher charges, nearing 25%.
Conclusion
The recent announcement of new tariffs reinforces the Trump administration’s intent to prioritize domestic economic concerns while navigating complex international trade relationships. As global markets respond to these changes, the efficacy of the new tariffs will be closely scrutinized, particularly in relation to the U.S. economy and its trade partners. The evolving landscape of U.S. trade policy underscores the ongoing tensions and the need for strategic negotiations moving forward.
