Out with the old tariffs, in with the new. At the stroke of midnight Thursday, the president’s 10 percent global tariff, implemented on February 24 with a 150-day lifespan, expired. In its place came a sweeping new round of levies on 60 trading partners around the world (59 countries plus the EU), in the range of 10 to 12.5 percent.
The new levies are being enacted under Section 301 of the Trade Act of 1974, a law that gives the executive branch power to address unfair trade practices. The administration says that the tariffs are a response to other nations importing goods made with forced labor.
Many critics—both home and abroad—are protesting the rationale as a cynical excuse to charge more tariffs. In a hearing this week, Senator Ron Wyden of Oregon blasted the move, calling Section 301 a “zombie law” and accusing the president of “reconstruct[ing] his illegal global tariffs under the guise of addressing forced labor.”
They cover almost all U.S. imports, with some exemptions carved out, including fuel, fertilizers, pharmaceuticals and some metals. In most cases, the new tariffs will stack on top of existing duties rather than replace them—though there are some exceptions. For example, the upholstery and wood cabinetry tariffs enacted last fall (imposed under Section 232 of the Trade Expansion Act of 1962)—which are currently between 10 and 25 percent—will supersede these new duties.
This new slate of tariffs is the latest development in a chain of events set in motion by February’s Supreme Court ruling that the president’s prior efforts to implement global tariffs, pinned to a law called IEEPA, were illegal. The rollback of those tariffs kicked off an unprecedented refund process. It also inspired new tariffs: Immediately following the ruling, the administration unveiled a stopgap 10 percent global duty under a different law—one with a built-in expiration date of July 24.
Though the new 301 levies are not identical to the ones they replaced, many U.S. importers will experience very little change in their tariff bills. A senior administration official told NPR that the new measures were timed to “avoid complexity” for businesses.
This round of tariffs comes as the White House appears to refocus its attention on trade. Earlier this week, Trump unveiled a 50 percent tariff on Canadian imports that is set to take effect in late August. At the same time, the administration is in the midst of additional investigations that will allow it to levy further tariffs under a variety of justifications. These, too, will likely face legal challenges.
Exhausted by the roller coaster ride of last year’s drama, the home industry has largely moved on from the topic of tariffs. However, if the administration’s recent moves are any indication, there will be more drama to come.
