Trump launches new tariff system... 10% to 12.5% on 60 countries, including 12.5% for South Korea

[Financial News, New York = Lee Byung-chul]The executive branch of the United States federal government under Donald Trump will impose new tariffs of 10% to 12.5% on 60 countries, including South Korea, Japan and the European Union (EU). South Korea was effectively hit with a 12.5% tariff. After the Supreme Court of the United States (SCOTUS) blocked the existing reciprocal tariffs, the administration is continuing its protectionist policy with a new legal basis.
The Office of the United States Trade Representative (USTR) announced on the 23rd local time that the tariffs will take effect at 12:01 a.m. on the 24th, Eastern Time. The new duties will replace the existing 10% global temporary tariff, which expires at the same time. After SCOTUS ruled in February that most of the existing reciprocal tariffs were invalid, Trump introduced a 10% temporary tariff in their place.
The tariffs target 60 countries that account for about 99% of U.S. trade. USTR said it will apply a 10% tariff to countries that enforce forced-labor bans, and a 12.5% tariff to those without relevant laws.
The list of affected countries includes South Korea, Japan, India and Canada, as well as major U.S. trading partners such as the European Union (EU) and the United Kingdom.
The Trump administration said the measure was based on USTR's findings from its forced-labor investigation. It argued that U.S. companies are being put at a disadvantage because other countries do not adequately block imports of products made with forced labor or fail to properly enforce related laws.
However, items already subject to separate tariffs on national security grounds, such as steel, aluminum, automobiles and auto parts, are excluded from the latest measure. Some food and agricultural products, fertilizers and energy products are also exempt. Goods covered by the United States–Mexico–Canada Agreement (USMCA) are likewise excluded.
The move is an extension of Trump's recent series of high-tariff policies. On the 21st, Trump imposed a 50% tariff on some Canadian products, and last week he applied a 25% tariff to many Brazilian goods.
Above all, the latest tariffs are significant because the administration has restarted its tariff policy by using a new law after the Supreme Court ruling.
Earlier, SCOTUS ruled in February that the 'Liberation Day' reciprocal tariffs imposed by Trump under emergency powers exceeded his legal authority and were therefore invalid. The administration then temporarily kept a 10% global tariff in place, but that law allows tariffs to be imposed for only 150 days, meaning it will expire on the 24th.
Accordingly, the Trump administration established the new tariff system by invoking Section 301 of the Trade Act of 1974, a more stable legal basis. The provision allows the president to impose tariffs in response to unfair or discriminatory trade practices by foreign governments.

[email protected] Lee Byung-chul Reporter