The United States is entering a more durable phase of its tariff campaign, using established trade statutes to replace temporary duties and rebuild levies invalidated by the Supreme Court, Reuters reported on July 25. The shift could reshape costs and supply decisions across the $3.4 trillion US import market while giving companies a clearer, though still uncertain, view of Washington's trade policy.
The latest action imposes duties of 10% or 12.5% on goods from 60 economies that Washington says inadequately enforce bans on products made with forced labor. The Office of the US Trade Representative said the measures, brought under Section 301 of the Trade Act of 1974, cover 99.4% of US imports and largely replace a temporary global tariff of 10% that expired on Friday.
Reuters said the administration is also pursuing an investigation into excess industrial capacity involving 16 major trading partners, including China, the European Union, Japan, South Korea, Mexico and Vietnam. Other planned or continuing reviews concern Vietnamese intellectual property practices and national-security protection for strategic industries such as semiconductors, robotics and industrial machinery.
The new structure follows the Supreme Court's rejection of earlier broad tariffs imposed under emergency powers. Reuters reported that those earlier duties generated $166 billion before refunds to importers pushed net collections below zero, while the subsequent 150-day temporary tariffs produced $31 billion in assessed revenue through July 5; that money may also face refunds if a federal court ruling stands.
Businesses now face a mixture of greater predictability and continuing risk. Vacuum maker Bissell told Reuters it had planned on tariffs remaining in a 10% to 15% range and had not accelerated imports, but small companies have already challenged the forced-labor duties in court. AP reported on July 25 that rising trade costs, energy prices and borrowing costs were influencing decisions by both households and businesses.
US Trade Representative Jamieson Greer told senators that the legal authorities had changed but the strategy had not, according to Reuters. He said accumulated tariffs should remain within negotiated caps, including 15% for the European Union, Japan and South Korea, while investigations and legal challenges continue. The next decisions will determine how durable the system is and how much additional cost importers pass through to consumers.
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