Trump Plans New Tariffs on 60 Economies

Summary

Bloomberg's Jon Herskovitz and Chris Kennedy discuss the new US tariffs on 60 economies under Section 301, which replace the previous tariff wall struck down by the Supreme Court. The tariffs cover nearly all imports but include carve-outs for autos, energy, and pharmaceuticals. The effective tariff rate is slightly lower than expected, and Asian economies like Japan, Korea, and Taiwan received some relief due to existing trade deals. The administration is using a mix of durable and untested legal authorities to maintain flexibility.

• The US imposes new Section 301 tariffs on 60 economies, covering nearly all imports.
• Previous tariffs under IEEPA were struck down by the Supreme Court.
• Major carve-outs exist for automotive, energy, pharmaceuticals, and goods under existing trade agreements.
• The effective US tariff rate is about 10.7%, slightly lower than the earlier USTR proposal.
• Asian economies—Japan, South Korea, and Taiwan—received tariff alleviation due to trade deals.
• The administration is using durable Section 301 and untested Section 338 authorities for future flexibility.
• No immediate retaliation from trading partners, but pushback is expected as Asian markets open.