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New Tariffs Take Effect: What It Means for ETF Investors


The latest round of U.S. tariffs officially took effect Friday, with new duties ranging from 10% to 12.5% now applying to imports from dozens of America’s largest trading partners, including much of Europe, China, India, Australia, Brazil, and others.


The move replaces the previous 10% near-universal tariff that was struck down by the Supreme Court in a 6-3 ruling that found the administration had overstepped its authority under the International Emergency Economic Powers Act. Rather than backing away from its trade agenda, the administration has introduced a new framework under Section 301 of the Trade Act of 1974, tied to a U.S. Trade Representative investigation into alleged forced labor practices abroad. Countries judged to have made some effort to enforce bans on forced-labor-produced goods face the lower 10% rate; those judged to have done less face 12.5%.


Not surprisingly, many affected countries have criticized the decision. Brazil has said it plans to pursue a case at the World Trade Organization, and officials in the EU and Australia have called the rationale unjustified. Still, most have stopped short of announcing immediate retaliation.

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New Tariffs Take Effect: What It Means for ETF Investors


The latest round of U.S. tariffs officially took effect Friday, with new duties ranging from 10% to 12.5% now applying to imports from dozens of America’s largest trading partners, including much of Europe, China, India, Australia, Brazil, and others.


The move replaces the previous 10% near-universal tariff that was struck down by the Supreme Court in a 6-3 ruling that found the administration had overstepped its authority under the International Emergency Economic Powers Act. Rather than backing away from its trade agenda, the administration has introduced a new framework under Section 301 of the Trade Act of 1974, tied to a U.S. Trade Representative investigation into alleged forced labor practices abroad. Countries judged to have made some effort to enforce bans on forced-labor-produced goods face the lower 10% rate; those judged to have done less face 12.5%.


Not surprisingly, many affected countries have criticized the decision. Brazil has said it plans to pursue a case at the World Trade Organization, and officials in the EU and Australia have called the rationale unjustified. Still, most have stopped short of announcing immediate retaliation.

Unlock the article to continue reading.

Trusted by 100,000+ investors. We won't spam you. See our Privacy Policy.

Email Verification Required

Thank you for subscribing! Please check your email inbox and confirm your subscription to access the full article content.

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