#UStoImpose10To12.5PercentTariffsOn60Economies

US Launches Tariffs Against 60 Global Economies amid Trade Tensions – Market Report Global trade shifts to a new phase as the US Trade Representative (USTR) on Tuesday imposed new tariffs on as many as 60 economies, ranging between 10% and 12.5%. As per Section 301 of the Trade Act of 1974, the tariffs are now applied at varied rates compared to 10% general duty on imports worldwide imposed by former president. The new policy officially became effective from midnight EDT time and applies on over 99 percent of US trade.

According to the USTR report, the measures were enacted considering concerns over forced labor practices.

New tariff rates apply on EU, Switzerland, Japan, and South Korea from10-12.5 percent whereas on the other hand, Canada, Mexico, India, and UK imports will be subjected to a 10% tariff. As for China, the administration decided to charge 12.5% on its imports. Some key product categories have not been included, which consists of fuel, food, fertilizes, and goods subject to the sector-specific tariffs as automobile, metals, pharmaceutical etcetera. Also the items classified under the USMCA agreement would not be a subject.

It is being said that the decision of the US to imposition of tariffs can pave to increase in supply chain disruption, product costs and could also create inflation in major global economies.

US administration decision would affect manufacturers dependent on imports from these countries with increased operational costs; investment in domestic production of goods would see further development, whilst companies engaged in import and export activities need to plan a counter-strategy going forward in the view of potential trade wars or retaliation from any of the subjected countries. However, how the new policy impacts in months to come on currencies, commodities, equities and market participants is yet to be seen. Do these new tariffs will boost domestic industries, or will make things costlier around the world?

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