The tariff wall never came down — it was just under renovation. After the Supreme Court struck down Trump's earlier import levies, the administration found a new legal path. Now it's back, with fresh duties covering 99% of US imports that took effect Friday at 12:01 a.m.

The new architecture: The White House's latest trade package rests on Section 301 of the Trade Act of 1974, targeting 60 major trading partners with tariffs ranging from 10% to 12.5%. The rates are linked to forced labor policies, with countries that prohibit imports made with forced labor facing a 10% tariff and those without such bans subject to 12.5%. Critics argue the forced labor provision is largely a legal justification for broader trade action, but the policy is now in force.

• The UK, Canada, Mexico, and India fall into the 10% tariff tier, while Japan, South Korea, and Switzerland face a 12.5% rate under the new framework.
• Existing tariffs on sectors such as steel, aluminum, autos, pharmaceuticals, fuel, fertilizers, and food remain unchanged, while USMCA-compliant goods stay exempt.

The Fine Print

The forced labor investigation drew more than 2K public comments, and companies can still seek product-specific exemptions. Former USTR deputy assistant Nathaniel Halvorson called the process "underappreciated," arguing that final tariff decisions are often far more targeted than the initial announcements. That has given businesses a way to navigate the uncertainty rather than simply absorb it.

• Markets have largely shrugged off the rollout, with strategists already pricing in average tariffs of 10% to 15%, prompting Fitch Ratings to call the new levies "more noise than shock."
• Fitch says the bigger risk is a separate Section 301 probe into excess manufacturing capacity, where additional tariffs could reignite inflation and weigh more heavily on economic growth.

The capacity probe: The first wave of pain will likely hit import-heavy retailers, consumer brands, and industrial companies that rely on global supply chains. But the tariff story may not end there. USTR Jamieson Greer has said the separate Section 301 investigation into excess manufacturing capacity is taking longer than the forced labor case, suggesting another round of trade action is still on the horizon