Here's How Trump Plans to Rebuild His Tariff Wall

President Trump is in a hurry to rebuild the tariff wall the Supreme Court tore down less than four months ago. The administration this week proposed slapping double-digit tariffs on products from 60 major US trading partners after an investigation into imports of goods allegedly made with forced labor. And more tariffs are likely coming. Under the proposal released in Washington late Tuesday, the AP reports 16 economies—including Canada, Mexico, the European Union, Taiwan and the United Kingdom—would face 10% levies for allegedly failing to enforce bans on forced labor. Another 44 trading partners—including China, Japan, India, South Korea and Switzerland—would be hit with 12.5% import taxes.

The administration, mindful that Americans are growing increasingly unsettled by high prices with midterm elections just months away, said it would limit the impact by exempting from the latest proposed tariffs a long list of products, including aircraft parts, food products (from coffee to beef), and rare earth minerals crucial in the production of smartphones and cars. Also spared would be products from Canada and Mexico covered by a North American trade pact. The new tariffs would not take effect immediately. They are subject to public comment and review. Public hearings on the proposed duties are due to begin on July 7.

After February's loss in court, Trump turned to another law to impose temporary 10% tariffs globally. But those stopgap levies expire July 24. And a specialized trade court ruled last month that they, too, were illegal—though the government can continue collecting them while that case works its way through the courts. Trade lawyer Ryan Majerus expects the new tariffs to be ready by the time the temporary ones expire. "The [US Trade Representative] is under enormous pressure to make sure there's no gap (in tariff revenue), probably from the White House,'' he said. "I'm confident, based on the schedule they're on now, that they will have these done and ready to implement.''

He noted that the investigation into forced labor is "working at about two times the normal speed'' of typical 301 cases. The administration is also pursuing a Section 301 case into whether 16 US trading partners (accounting for 70% of US imports)—including China, the EU, and Japan—are overproducing goods, driving down prices, and putting US manufacturers at a disadvantage. The plan drew immediate pushback. "There is no such thing as forced labor in China, and we oppose using it as an excuse to engage in political manipulation," a Foreign Ministry rep said in Beijing.