Overview
- The new duties took effect at 12:01 a.m. on Friday when a temporary 10% global tariff expired, with goods already in transit exempt until July 28.
- The Office of the U.S. Trade Representative said the tariffs target countries it found to have failed to prohibit or enforce bans on goods produced with forced labour.
- Seventeen economies, including India, Canada and the United Kingdom, were assigned a 10% rate while the other 43 face 12.5%, and multiple product exemptions were carved out for items such as oil, gas, fertiliser and goods covered by USMCA.
- Trading partners and analysts immediately objected and several governments said they will seek removal or pursue diplomatic channels, while U.S. industry groups are filing exemption requests and legal challenges are expected.
- Economists say higher import costs will push some consumer prices up and complicate supply chains, and a separate USTR 'Excess Capacity' probe covering 16 partners could add further tariffs later this year.