The imposition of new tariffs by the US on imports from over 80 countries, including the UK and EU, is set to have a significant impact on global trade flows. From tomorrow morning, goods from these nations will face duties ranging from 10% to 12.5%, with the UK facing a 10% tariff for now. This development comes as a temporary global import levy expired today, following a Supreme Court ruling in February that limited President Trump's executive authority on such matters.
According to data from the US Trade Representative's office, the tariffs are a direct consequence of investigations into the labour practices of the affected nations, assessing their ability to prevent goods produced with forced labour from entering the US market. Countries deemed compliant, including the UK, Canada and India, will be subject to a 10% tariff, while those identified as non-compliant, such as Australia and China, will face a higher 12.5% duty.
The latest move follows a Supreme Court ruling in February that President Trump had exceeded his executive authority when imposing 'Liberation Day' tariffs under the Trade Act of 1977. The administration subsequently introduced a 150-day 10% global tariff under Section 301 of the Trade Act of 1974, which expired today.
The current tariffs are being implemented under Section 301, allowing President Trump to impose duties following investigations by the US Trade Representative into unfair labour practices affecting American commerce. Given the history of court challenges to these powers, it is likely that this application too will face immediate legal scrutiny. Experts, such as Alan Wolff, a senior fellow at the Peterson Institute for International Economics and former deputy director-general of the World Trade Organization, have warned that these new tariffs represent further presidential overreach and could be overturned if challenged in court.
The UK's trade relationship with the US is likely to bear the brunt of this development. As one of America's top trading partners, the imposition of a 10% tariff on British exports could impact various sectors, from manufacturing to services. The UK Government will be closely monitoring the situation and may consider diplomatic engagement with Washington or challenging the tariffs through international trade bodies.