Trump Administration Imposes New Tariffs! 60 Economies Face 10% to 12.5% Levies, Tariff Rate for Taiwan Announced

The United States has announced a new round of tariffs ranging from 10% to 12.5% on imported goods from most of its major trading partners, aiming to combat forced labor. The new measures will take effect at 12:01 a.m. Eastern Time on Friday (24th), replacing the 10% temporary tariffs that expire at the same time.

The Trump administration previously launched investigations into around 60 economies suspected of failing to prevent forced labor in their supply chains and thereby harming U.S. labor interests. The current tariffs are based on the findings: approximately 10 trading partners deemed to have established legal frameworks banning forced labor imports will face a 10% tariff, while dozens of economies that do not meet the standards will face a 12.5% tariff.

Imports of fuel, food, and fertilizers will be exempt from the new tariffs. Goods already subject to sector-specific tariffs—such as automobiles, metals, and pharmaceuticals—will remain unaffected. Additionally, goods from Canada and Mexico compliant with the U.S.-Mexico-Canada Agreement (USMCA) are also exempt.

According to a press release from the Office of the United States Trade Representative (USTR) published in the Federal Register, the 10% rate applies to countries that have already implemented, or committed through an 'Equitable Trade Agreement' to establish and enforce, bans on forced labor imports. These include Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.

For economies including the European Union, Taiwan, Japan, South Korea, and Switzerland, certain non-exempt products will be subject to either 10% or 12.5% tariffs, calculated after deducting the Most Favored Nation (MFN) tariff rate.

All other goods from investigated economies will be subject to a 12.5% tariff.

These new tariffs are implemented under Section 301 of the Trade Act of 1974, which is considered to have a more solid legal foundation compared to the previous tariff authority overturned by the Supreme Court. Once in effect, they can remain indefinitely, and the President may unilaterally adjust the rates.

As the new rates are close to the expiring 10% global tariff, markets expect limited short-term economic impact. However, trade experts warn that the U.S. will likely introduce further tariff measures in the coming months, potentially driving up costs for businesses and consumers.

Blake Harden, a trade expert at EY (Ernst & Young), stated that the Trump administration's tariff policies and their market impacts are not yet over. She said: 'There is still a great deal of uncertainty, and many more tariff measures could be introduced this year. The market was relatively calm for a while, leading some to mistakenly believe the situation was clearer, but in reality, many things will happen in the remainder of this year.'