Which Products and Countries Still Face Trump’s Tariffs?
Synopsis
The U.S. trading landscape has changed dramatically since the Supreme Court blocked President Trump’s use of emergency powers. But the trade war is not over. One new 10% global tariff is scheduled to start on Feb. 24, while sharp national security taxes on steel, aluminum and car parts are still fully in place. China is still experiencing the greatest hurdles, without the online shoppers’ advantage to import minor goods tax-free. Below, we break down which products, from kitchen cabinets to semiconductors, still face hefty duties and how the President is deploying new legal tactics in an effort to keep alive his “America First” trade agenda after the court’s setback.
The Supreme Court recently threw out President Trump’s most aggressive global tariffs, but he has already replaced them with a new 10% global tax. Many high-ticket items, such as steel, cars and semiconductors, are still subject to steep duties under national security laws that were not affected by the court.
- The Supreme Court has invalidated many “emergency” tariffs, but numerous taxes survive
- President Trump rushed out a new 10 per cent global tariff under a separate law
- Key items such as steel, aluminum and car parts still face hefty tariffs
- China still faces the harshest trade penalties of any country
- Small package rules shift and online shoppers lose their “duty-free” perks
The New 10% Global Tax Replaces the Old Rules
Even though the Supreme Court called many of President Trump’s “emergency” tariffs illegal, the trade war ain’t over. Hours after the ruling, the White House responded with a new 10% tariff across the board on many imports beginning Feb. Taxes of up to 50% were possible under the old rules, but the new legislation invoked has tighter constraints. It can stay in place for only 150 days, unless Congress acts to continue it, and the level cannot exceed 15 per cent. It’s a way to give the President’s trade strategy time to breathe while he searches for more permanent means of taxing foreign goods.
Which Products Still Face High Taxes?
Many items are still subject to steep tariffs because they are taxed for national security reasons, and the court ruling did not alter that. For example, foreign steel and aluminium both still get slammed with a punishing 50% tax, as do copper parts. The car industry is also a loser, as 25 per cent tariffs remain in effect for imported cars, car parts and heavy-duty trucks. Even home goods are not spared; the same 25% tax applies to bathroom cabinets, kitchen vanities and upholstered furniture to make people buy American-made products.
Why China and Tech Remain Targets
China continues to be the administration’s biggest target for trade. Despite the recent court defeat, many Chinese imports are now under a 30% tariff levied after a recent truce. Certain electronics and semiconductors, the brains of modern computers, are subject to a 25% tax intended to protect American technology. The government is also considering the possible imposition of new duties on other high-tech goods including wind turbines, medical equipment and robotics, and even movies. For now, anything coming from China is likely to cost several times as much as goods from other countries.
Trade relations with America’s closest neighbours, Canada and Mexico, are in flux. Though they were once threatened with a 25% tax for border security, in fact most of their goods will be protected by the new North American trade deal (USMCA). Most of the products they produce will be spared from the 10% global tax also. But other allies, including the European Union, Japan and South Korea, are in a more difficult spot. Numerous of the special deals they made are now in question, because they were built on the laws that the Supreme Court just blew up.
The End of ‘Cheap’ Online Shopping
For decades, Americans could sidestep all taxes on items they ordered online from abroad, so long as the package was valued at less than $800. It was a common method for people to purchase cheap clothes and gadgets. But, officially this “duty-free” loophole are now over as of late August. Now every package, no matter how small, is subject to a tax related to where it was made. E-commerce sites in particular are impacted by this change since they can no longer take advantage of the rule to keep their prices low down to the rock bottom level, and they also ship from places like China or Hong Kong.
What Comes Next in 150 Days?
The present state of trade is a patchwork of various laws and temporary fixes. With a short 150-day deadline for the new 10% global tariff, there are now months of a political race between the President and Congress. Trump has vowed to investigate new ones and restore the higher rates that were invalidated. For businesses and consumers, that means prices are likely to continue to be volatile. Although some of the 50 per cent taxes have disappeared for now, the administration is making clear that it will use every legal tool at its disposal to keep the trade war alive.
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