Just before a temporary global import tariff was set to expire, the Trump administration imposed a new wave of tariffs on more than 80 countries late Thursday, with rates ranging from 10% to 12.5%. The new tariffs took effect on Friday morning.
The move marks the latest effort by President Donald Trump to continue imposing global tariffs without congressional approval, despite a U.S. Supreme Court ruling in February that found he had unlawfully used executive authority to implement broad global trade policies.
Trump has long argued that the United States pays an unfair share in global trade and that higher tariffs are necessary to boost American manufacturing and create jobs.
Which countries are affected?
More than 80 countries, including some of America’s largest trading partners, are affected by the new tariffs. These include Canada, Mexico, China, the United Kingdom, Australia, India, and all 27 member states of the European Union.
According to the Office of the U.S. Trade Representative (USTR), the countries were evaluated based on their labor practices, particularly whether they effectively prohibit the import of goods produced through forced labor.
How much will they pay?
Affected countries will face tariffs of either 10% or 12.5%.
Countries subject to the 10% tariff are those that have committed to adopting and effectively enforcing bans on imports made with forced labor. This group includes Canada, the European Union, India, Mexico, and the United Kingdom.
Countries facing the higher 12.5% tariff include those deemed not to have adopted effective forced-labor import bans, including Australia, Brazil, China, and Japan.
What did the Supreme Court rule?
In February, the U.S. Supreme Court ruled 6–3 that the 1977 emergency powers law invoked by Trump did not provide sufficient legal authority for his sweeping “Liberation Day” tariffs.
The Court held that while the law grants presidents broader authority during national emergencies, the constitutional power to enact trade legislation during peacetime belongs to Congress.
Are the new tariffs legal?
Following the Supreme Court ruling, the Trump administration signaled its intention to pursue alternative legal mechanisms to keep tariffs in place.
Trump initially imposed a temporary 10% global tariff for 150 days under Section 122 of the Trade Act of 1974, which expired on July 24.
The latest tariffs are based on Section 301 of the Trade Act of 1974, which authorizes the president to impose tariffs if the USTR concludes, following an investigation, that unfair foreign trade practices are harming U.S. commerce.
Legal experts expect the new tariffs to face court challenges. Alan Wolff, a senior fellow at the Peterson Institute for International Economics and former Deputy Director-General of the World Trade Organization, argued that the new measures represent another example of presidential overreach.
“If challenged in court, the Supreme Court would likely strike them down,” Wolff wrote.
How have tariffs affected Americans?
According to the Federal Reserve Bank of New York, approximately 90% of the economic burden created by the tariffs has ultimately been passed on to American consumers and businesses, despite the administration’s claims that the policy benefits the U.S. economy.
The tariffs have also proven politically unpopular. A recent Harris Poll found that 72% of Americans believe the tariffs have negatively affected consumers, including 64% of Republican voters.
However, for many small U.S. businesses, tariffs have become a secondary concern compared to other economic challenges such as rising operating costs and the rapid expansion of artificial intelligence. Since the Supreme Court’s February ruling, the federal government has also refunded tens of billions of dollars in tariff revenues to companies.
