Trump’s New Tariffs Could Cost Americans $100 Billion a Year

President Donald Trump on Thursday unveiled a new package of tariffs targeting 60 countries, which account for more than 99% of U.S. imports. If upheld by the courts, these tariffs could cost Americans approximately 100 billion dollars annually in increased expenses. The tariffs, ranging from 10% to 12.5%, were announced as part of the president’s efforts to circumvent numerous court rulings against his sweeping tariffs, including those issued by the U.S. Supreme Court, which has a conservative majority.

The Trump administration’s chief trade representative, Jamieson Greer, cited Section 301 of the Trade Act of 1974 to justify the new tariffs, claiming they aim to punish countries “for their failure to introduce and effectively enforce a ban on the import of goods produced using forced labor.” Observers have questioned the administration’s rationale. “Magically, the U.S. investigation into forced labor practices concluded perfectly in time to replace the broad but expiring Section 122 tariffs,” noted Josh Wingrove of Bloomberg, referring to the legal authority Trump cited for previous tariffs.

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Legal Challenges and Congress’s Position

Congressman Mike Levin (Democrat from California) acknowledged that “Section 301 is a law passed by Congress,” but added: “What was passed in 1974 was the authority to respond to specific unfair trade practices after an investigation.” According to Levin, “What is being done with it now is a tariff on 99% of American trade, set by Trump, with no expiration date, no vote, and no limits.” He also stated: “If such broad delegation is legal, then the tariff power in Article I means very little.” The Supreme Court struck down the last version of this policy in February, prompting the administration to bypass Congress, find another statute, and reinstate essentially the same tariffs that took effect the moment the old ones expired.

Target Countries and Past Impact

The list of countries targeted by the Section 301 tariffs includes Canada, Australia, Brazil, China, Mexico, Russia, Norway, United Kingdom, and Vietnam. Between the start of his second administration and January 2026, Trump’s tariffs are projected to cost American families an average of 1,700 dollars each, as importers pass the burden on to consumers through higher prices. The tariffs have also significantly impacted small businesses, worsened challenges for farmers, and failed to halt the decline of jobs in American manufacturing.

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Expert Assessment and Vulnerability

The Progressive Policy Institute stated on Thursday that the new tariffs “are likely to cost Americans 100 billion dollars a year” cumulatively. However, the group’s trade director, Ed Gresser, noted that the administration’s order “appears vulnerable to challenge, and courts will have strong grounds to strike it down.” “Its vague statements about forced labor abroad do not hold up to scrutiny,” said Gresser. He added that “constitutionally, this is likely impermissible as an attempt to use a law intended to address problems abroad to impose a general tariff increase.” Legally, he explained, Section 301 requires administrations to demonstrate “unreasonable actions, policies, or practices” that create a burden on U.S. commerce, which this executive order does not accomplish. “By making emotional statements about forced labor, it does not provide evidence that the listed countries purchase goods made using forced labor, nor does it demonstrate that if they did, it would create the statutorily required ‘burden on U.S. commerce.'”

Congressman Brendan Boyle (Democrat from Pennsylvania), the leading Democrat on the House Budget Committee, stated in his statement that “these new tariffs are the same thing: a nationwide sales tax that will further complicate life for families already struggling with the costs of Trump’s reckless war in Iran.”

Source: Common Dreams

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