Trump administration to impose new tariffs of 10 to 12.5 percent on over 60 countries

President Donald Trump's administration announced on Thursday that it will impose new tariffs of from 10 to 12.5 percent on over 60 trade partners, including China, starting on Friday, to replace other temporary duties that will lapse overnight.

The new tariffs will begin at 12.01 am EST on Friday, just as the prior 10 percent tariffs, enacted in February, are set to expire.

It is expected that China will likely face additional levies of 12.5 percent on some products, as will another 43 countries, including Japan, South Korea and Australia, Politico reported.

At least 17 trade partners including Canada, the European Union, Indonesia, the United Kingdom and Mexico will face a 10 percent duty on some products. This fee plan was initially laid out by the Office of the United States Trade Representative after it carried out an investigation.

It is the latest attempt by the Trump administration to resurrect the duties slapped on countries on so-called Liberation Day of April 2, 2025, which were struck down by the Supreme Court in February.

This was because the 1977 International Emergency Economic Powers Act used to enforce those Liberation Day tariffs was deemed an incorrect way to do so. It later prompted billions of dollars in refund applications by US companies.

In response to that ruling, Trump announced in February that he would enact a temporary 10 percent worldwide tariff using Section 122 of the Trade Act of 1974. But they only lasted for 150 days and expire on Friday.

The Trump administration's latest 10 percent tariffs will be put in place on countries that it deems have not sufficiently enforced bans on goods produced by forced labor.

The latest tariffs will use Section 301 of the Trade Act of 1974. This more robust law enables a US president to impose tariffs on any country that it finds has "failed to curb" the trade of goods made with forced labor.

However, some products including oil, gas and fertilizer are exempt from these latest tariffs, according to The Associated Press.

Other goods that will not be hit with the new levies will be any that qualify for duty-free status under the United States-Mexico-Canada Agreement.

The roll-out of the tariffs comes after the Office of the United States Trade Representative carried out a five-month investigation.

It received comments up to July 6 and held public hearings from July 7 until July 9 at the US International Trade Commission in Washington, DC on whether or not to enact these new tariffs.

Many businesses that import or export from overseas — including China — warned in their public comments that any additional tariffs imposed by the US would disrupt supply chains and ultimately hurt their businesses and sting American consumers further with higher costs.

Over the next few weeks, it is expected that other duties will be placed on 16 countries and the EU under Section 301.

It could mean that even higher duties will be put on goods from China, the EU, Indonesia, South Korea, Vietnam, Mexico, Japan, India and others.

Trump previously used Section 301 to impose tariffs on China in his first term in office. They proved difficult to strike down in court.

The US president has faced an uphill legal battle to ensure that his tariffs can be legally kept in place.

Americans are already frustrated by a rise in prices across the board for food and household items, many of which originate in China.

Brent crude oil passed the important benchmark of $100 a barrel on July 23 due to the US-Israel war with Iran, further straining costs.

Experts said that the administration is taking a risk in rolling out new tariffs ahead of the Nov 3 midterm elections.

Tom Fullerton, an economist and professor at the University of Texas at El Paso, told China Daily when the initial tariffs were enacted that "lower income US consumers will face the biggest consequences from the new tariff hikes.

"That is because they purchase more merchandise goods than services and many of those goods are produced in China or contain components that are produced in China."

He also warned that US manufacturers will have to pay higher prices for imported components and US retailers will have to pay higher wholesale prices for imported consumer goods.