US President Donald Trump has imposed new tariffs of 10% to 12.5% on imports from 60 countries. These include certain products from the European Union. The additional tariffs come into effect today.
The current tariffs expire on Friday
The tariffs will apply to almost all imported products. Exceptions to the new rule apply to products that have already been loaded on a ship, are in the final stages of transportation to their destination and will be released from customs before July 28. Exemptions will also apply to oil, natural gas, fertilizers, as well as goods covered by the United States-Mexico-Canada Agreement (USMCA).
A ten percent tariff will apply to the European Union in the future. The justification for the announcement is that the affected countries, which account for 99 percent of US imports, have not sufficiently implemented bans on goods produced through forced labor.
Trump is invoking Section 301 of the Trade Act. It allows the president to impose import tariffs on countries accused of "unjustified, disproportionate, or discriminatory" trade practices. At the same time, the statutory deadline for the current global ten percent tariffs expired today.
Following his defeat before the US Supreme Court in February, Trump had imposed them in a hurry. The Supreme Court then ruled that Trump's earlier tariffs on dozens of trading partners - including the EU - were illegal because they were imposed under an emergency law. Trump has exceeded his powers as president.
The new tariffs were immediately met with criticism. Democratic Representative Richard Neal called the arguments for the tariffs fabricated and said Trump's tariff policy was based on dubious legal grounds.
Brazil called the tariffs "arbitrary and unreasonable" and announced that it would activate its reciprocity law, which could allow for the imposition of retaliatory tariffs. The country also intends to file a complaint with the World Trade Organization (WTO). Chile also criticized the decision, saying that according to its own data it applies strict labor and control standards against forced labor. Similar opposition came from Australia and New Zealand.
Canada does not rule out retaliation
Canada intends to respond to the tariffs - possibly with countermeasures. "There are a whole range of options that we can respond with", said Canadian Prime Minister Mark Carney after a meeting with the heads of government of the Canadian provinces and territories. Carney plans to resort to this step if an agreement is not reached. The new tariffs affect, among others, honey, alcohol, dairy products, certain wood products and hockey sticks from Canada. Energy products, potassium nitrate, fish and important minerals are excluded. Goods that were previously protected by the Free Trade Agreement between the United States, Mexico and Canada could also be affected.
ARD