Trump Imposes New 10%-12.5% Tariffs on 99% of US Imports from 60 Partners

Summary

President Trump has implemented new tariffs of 10% to 12.5% on approximately 99% of U.S. imports, covering 60 to 80 trading partners MSN+ 2. These measures, based on Section 301 of the Trade Act of 1974, replace expiring temporary levies and specifically target nations with perceived weak anti-forced-labor protections benzinga_article+ 2. While oil, gas, and certain USMCA-compliant goods receive exemptions, major economies like the EU, Japan, and South Korea face significant new duties JIN10+ 2.

Impact Analysis

So, they’re basically admitting the previous tariff strategy was legally vulnerable and are now using ‘forced labor’ as a more robust legal shield to keep the protectionist engine running benzinga_article+ 2. This isn’t just a minor adjustment; covering 99% of imports with a 10-12.5% floor is a massive, immediate tax on the U.S. supply chain . While USMCA partners get the lower 10% bound, the 12.5% hit to Japan and Korea signals a clear escalation JIN10.

With oil already hitting $100 and tech selloffs deepening, the ‘cooling inflation’ narrative is effectively dead for now MorningStar. The market seems to be underestimating the margin squeeze on retailers and tech firms that can’t easily reshore. Bottom line: this is a ‘buy American’ mandate disguised as a human rights policy. I’d be looking to trim exposure to globalized consumer discretionary and start pivoting toward domestic industrials that already have U.S. capacity, especially with that 200% generic drug tariff cliff looming in the distance Businesstimes News+ 2.