Trump to expand tariff powers, sets 15% baseline on Japan

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The White House says the move aims to boost U.S. manufacturing and national security by reducing reliance on foreign supply chains. 

“These actions protect national security, strengthen supply chains, and support American workers and industries,” the White House said in its fact sheet.

Critics note the new inclusion process could disrupt automotive and other manufacturing supply chains across North America. 

In a Sept. 16 letter organized by the U.S. Chamber of Commerce, a coalition of more than 40 business associations, raised concerns about the expanded inclusion process.

“The sudden expansion of tariffs with limited industry consultation increases costs by generating significant compliance burdens for businesses of all sizes, including those that do not produce steel and aluminum products,” the letter reads.

“Manufacturers account for more than half of all U.S. imports, and these imports are very often products that are not available from domestic sources in sufficient quantities or supplied quickly enough to meet operational timelines. The harm to U.S. employment among downstream producers of items now covered will ultimately be significant, including with respect to those that are key to powering critical industries and the broader U.S. economy.”

Separately, on Sept. 5, the Trump administration signed an executive order revising his reciprocal tariff policy, which was first imposed in April to address what the White House called a “national emergency” created by America’s trade deficit.

The new order added products such as aluminum hydroxide, resin, and silicone to tariff coverage and created the “Potential Tariff Adjustments for Aligned Partners” Annex. The mechanism allows lower tariffs on certain goods, from aircraft parts to agricultural products, if partner nations strike trade deals that address U.S. concerns about reciprocity and security.

The U.S. also finalized a trade agreement with Japan, establishing a 15% baseline tariff on most Japanese imports, with sector-specific rules for autos, aerospace, and pharmaceuticals. The deal took effect in stages during August and September.

Currently, U.S. tariffs cover goods from more than 90 countries, with rates ranging from 15% on Japan and South Korea to 50% on Brazil and India.

Import tariffs on some of the largest U.S. trade partners include:

• Brazil: 50%
• India: 50%
• Laos: 40%
• Switzerland: 39%
• Canada: 35%
• China: 30%
• South Africa: 30%
• Mexico: 25%
• Japan: 15%
• South Korea: 15%