Trump Administration Imposes New Tariffs on Over 80 Countries
TL/DR –
The Trump administration imposed a wave of tariffs on over 80 countries, including the US’s largest trading partners, just before a temporary global import levy was set to expire. The tariffs, ranging from 10% to 12.5%, are a continuation of President Trump’s efforts to impose global levies without congressional approval, despite the Supreme Court ruling in February that he had overstepped his executive power. The legality of these tariffs is likely to be challenged in court, while it is estimated that the economic burden of the tariffs was largely passed on to US consumers and businesses.
The Trump administration recently imposed a new series of tariffs ranging from 10% – 12.5% on over 80 countries, just as a temporary global import levy was about to lapse. The tariffs, which were effective from Friday morning, continue Trump’s attempt to apply global levies without congressional agreement, despite being ruled illegal by the supreme court in February.
Which countries are affected?
Major trading partners of the US like Canada, Mexico, China, the United Kingdom, Australia, India and the European Union are among those affected by these tariffs. Based on their labor practices, these countries were assessed by the office of the US trade representative.
How much will they have to pay?
The tariffs imposed vary between 10% and 12.5%, with countries that have adopted and enforced forced labor import prohibitions subject to the 10% tariff. Countries that have failed to do so are subject to a 12.5% tariff. Countries in this category include Australia, Brazil, China, and Japan.
What did the supreme court decide on tariffs?
The supreme court, in a 6-3 ruling in February, declared the 1977 law invoked by Trump as an inadequate legal basis for his tariffs. Although intended to permit the president greater authority during emergencies to govern international trade, the court acknowledged that the power to effect during peacetime solely rests with Congress.
Are the latest tariffs legal?
Even after the supreme court declared some tariffs illegal, the Trump administration hinted it was exploring ways to make tariffs permanent. These latest tariffs fall under section 301 of the Trade Act of 1974, which empowers the president to impose tariffs if the US trade representative uncovers substantial evidence of unfair labor practices affecting American commerce after proper investigation.
Despite this, it’s expected that these new tariffs will be legally challenged. Alan Wolff, the former deputy director-general of the World Trade Organization, argued that the new tariffs may be another case of presidential overreach.
How have tariffs affected Americans?
The New York Federal Reserve estimates that 90% of the economic burden of tariffs is borne by American consumers and businesses. Despite this, Trump’s administration insists the tariffs have been beneficial. In contrast, a Harris Poll found most Americans believe tariffs have had a negative impact on consumers. However, some small businesses aren’t concerned, prioritizing other economic issues, such as higher costs and artificial intelligence.
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