Trump administration unveils new tariffs on 60 trading partners as temporary duties expire

• Canada, Mexico, India, and China will face 10% tariffs, while Taiwan and the EU will be subject to 12.5% duties
• Many products are exempt including oil and gas, fertilizer, certain food products, and goods already facing Section 232 national security tariffs on automobiles, steel, aluminum, and copper
• The new tariffs follow the Supreme Court's February ruling striking down Trump's 'reciprocal' tariffs of 10% to 50%, and are part of a broader trade policy push including steep duties on generic drugs and additional Canadian imports

Market Summary: Trump Administration Implements New Tariffs on 60 Trading Partners

Key Developments

The Trump administration will impose new tariffs of 10% and 12.5% on imports from 60 trading partners effective Friday, replacing temporary duties that expire at 12:01 a.m. ET. The new tariffs are being implemented under Section 301 of the Trade Act of 1974, following the Supreme Court's February ruling that struck down President Trump's previous "reciprocal" tariffs ranging from 10% to 50%.

Tariff Structure

10% tariff tier: Canada, Mexico, India, and China

12.5% tariff tier: Taiwan and the European Union

Exemptions

Key products exempt from the new duties include:

• Oil and gas
• Fertilizer
• Certain food products
• Goods already subject to Section 232 national security tariffs (automobiles, steel, aluminum, copper)

Rationale

U.S. Trade Representative Jamieson Greer cited forced labor concerns, stating the U.S. enforces import bans on goods made with forced labor more rigorously than trading partners, creating a competitive disadvantage for American businesses.

Additional Trade Actions

The announcement follows other recent Trump administration trade measures:

• Tuesday: Generic drug imports remain tariff-free for two years before facing steep duties to encourage domestic pharmaceutical manufacturing
• Monday: 25% tariff on certain Canadian imports scheduled for August 19, targeting food products, apparel, synthetic materials, and industrial goods

Market Impact

Canada has already protested, calling the 50% tariffs a "direct violation" of trade agreements, signaling potential escalation in trade disputes with major U.S. partners.