The new duties are close in size to the expiring 10 percent global tariff, so the immediate price and trade flow impact should be limited. The more significant signal is durability: basing the levies on Section 301 rather than the emergency powers struck down by the Supreme Court gives the administration a legally sturdier platform to keep tariffs in place indefinitely and adjust them unilaterally. That raises the stakes of further tariff actions flagged for coming months, which trade watchers say could add materially to costs for businesses and consumers. Markets are likely to focus less on today’s rates and more on how durable this legal architecture proves under challenge.

— Trump’s new tariffs are pitched as anti forced labor measures, but their real innovation is a legal foundation built to survive the courts.

Summary:

• New tariffs of 10 to 12.5 percent take effect at 12:01 a.m. Eastern Friday, replacing Trump’s temporary 10 percent global tariff
• The levies cover 60 countries representing about 99 percent of US trade, according to the US Trade Representative’s office
• Countries with forced labor laws on the books get the 10 percent rate, others get 12.5 percent
• Steel, aluminum, autos, parts, and certain food, agricultural, fertilizer and energy imports are exempt
• The tariffs rely on Section 301 of the Trade Act of 1974, seen as more legally durable than the authority the Supreme Court struck down in February
• Countries can potentially move from 12.5 to 10 percent by passing forced labor laws, though none can currently reach zero

The Trump administration will impose new tariffs ranging from 10 to 12.5 percent on dozens of trading partners starting Friday, according to the Wall Street Journal (gated), replacing a temporary global levy that expires the same day. The new duties, announced by US Trade Representative Jamieson Greer’s office, are framed around combating forced labor and apply to 60 countries the office says account for roughly 99 percent of US trade.

Under the new structure, countries with laws addressing forced labor face the lower 10 percent rate, while those without such statutes face 12.5 percent. The Journal reports that goods already covered by separate national security tariffs, including steel, aluminum, automobiles and auto parts, are excluded, along with certain food, agricultural, fertilizer and energy products.

The legal basis for the new levies is significant. They rest on Section 301 of the Trade Act of 1974, a mechanism trade lawyers view as considerably more durable than the authority the Supreme Court struck down in February, when it derailed most of Trump’s earlier global tariff program. Once in place, the Section 301 duties can remain indefinite and can be altered unilaterally by the president. Trade lawyers cited by the Journal expect the new tariffs to withstand legal challenges, noting the law grants broad presidential authority following an investigation and does not require precise calibration to pass muster.

The administration has left a narrow path for countries to reduce their rate, with those passing forced labor legislation able to move from the higher to the lower tariff tier, as India did after a preliminary finding earlier this year. No country, however, can currently reach a zero rate, since the administration does not view any nation as sufficiently enforcing labor protections regardless of legislation on the books.

While the near term economic impact is expected to be limited given the new rates closely track the expiring temporary tariff, the Journal notes trade experts see this as the opening move in a broader rebuilding of Trump’s tariff regime following the Supreme Court setback, with further tariff actions already planned for coming months that could raise costs more substantially for businesses and consumers.

This article was written by Eamonn Sheridan at investinglive.com.