US imposes new tariffs of up to 12.5% on imports from 60 trading partners

US imposes new tariffs of up to 12.5% on imports from 60 trading partners

The latest measures are intended to encourage trading partners to adopt and implement similar restrictions.

Goods loaded onto ships in California, the US. — XINHUA/VNA Photo

The US on Friday began imposing new tariffs of between 10 and 12.5 per cent on imports from 60 major trading partners, including Việt Nam, under Section 301 of the Trade Act of 1974, according to the Office of the US Trade Representative (USTR).

The measures took effect after a temporary 10 per cent global tariff expired at 12.01am EDT on July 24.

US President Donald Trump's administration introduced the temporary tariffs after the US Supreme Court struck down broader tariffs imposed earlier this year. 

By invoking Section 301, the administration is relying on a more durable legal framework that allows the US to impose tariffs and other trade measures against countries whose trade practices are deemed unjustifiable, unreasonable or discriminatory.

The USTR said the US has prohibited the import of goods produced with forced labour for nearly a century and has consistently enforced the ban. The latest measures are intended to encourage trading partners to adopt and implement similar restrictions.

Under the final determination, a 10 per cent tariff will apply to economies that have enacted bans on imports made with forced labour, committed to enforcing such bans under reciprocal trade agreements or introduced measures restricting the import of certain goods produced with forced labour.

The economies subject to the 10 per cent tariff include Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago and the UK.

For certain non-exempt products imported from the European Union, Japan, South Korea and Switzerland, tariffs ranging from 10 to 12.5 per cent will apply, after accounting for most-favoured-nation tariff rates.

A 12.5 per cent tariff will be imposed on imports from all other economies covered by the Section 301 investigations, including Việt Nam.

The USTR also announced a number of product-specific exemptions. These include raw materials and products whose taxation could result in domestic supply shortages or broader economic disruption, as well as goods that cannot be produced or sourced in sufficient quantities or at reasonable prices within the US.

The agency said the exemptions are intended to minimise disruptions to domestic supply chains while encouraging trading partners to strengthen measures preventing the import of goods produced with forced labour. 

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