International Trade Partner Dave Townsend shared analysis of President Trump’s new tariffs ranging from 10% to 12.5% aimed at several countries accused of forced labor concerns. The new Section 301 tariffs serve as a replacement for the 10% global tariff set to expire this week. Apart from some goods and certain jurisdictions, the new tariffs cover most imports from locations representing nearly all imports into the United States.
Dave characterized “the (temporary) tariffs as the bridge from the (emergency) tariffs, which were held to be illegal, to something longer-lasting and more durable. They believe they’ll be able to stick indefinitely,” he told USA Today.
Among other heftier tariffs, the administration invoked Section 338 of the Tariff Act of 1930 to announce a new 50% tariff on certain Canadian goods due to the trade partner’s discrimination against U.S. alcoholic beverages, automotive, and dairy products. Dave described the section law as “untested, unused, a blank slate in terms of what it means and when it applies” in a National Law Journal article.
This follows the administration’s decision not to renew the US-Mexico-Canada Agreement (USMCA). Dave told China Daily that the recent tariffs on goods from Canada “appear to be aimed at encouraging an agreement between Canada and the United States, or in retaliation for the failure to reach such agreement, or both.”
Dave’s analysis was featured across several outlets, including:
- Dorsey eUpdate – Trump Administration Implements Replacement Tariffs Covering Most U.S. Imports
- Dorsey eUpdate – U.S. Government Announces Section 338 Retaliatory Tariffs Against Canadian Goods
- China Daily – New 50% US Tariffs Add Pressure on Canada as Trade Tensions Deepen
- Barron’s – US Readies New Tariffs as Trump's 10% Global Levy to Expire
- France 24 – US Readies New Tariffs as Trump's 10% Global Levy to Expire
- MoneyWise – Trump Targets Canada with ‘Nuclear Option’ 50% Tariffs — One Canadian Premier Calls for a ‘Dollar for Dollar’ Response. How to Prepare for a Trade War
- National Law Journal – ‘Untested, Unused, A Blank Slate’: What to Know About the Section 338 Tariffs
- USA Today – Trump Hits Countries Accused of Forced Labor with Tariffs Up to 12.5%
- Yahoo! Finance – US Tariffs on Brazil Take Effect as Trump Readies Fresh Flurry
