As a new wave of sweeping US tariffs took effect, experts warn that Washington's tariff policy is becoming increasingly institutionalized, a shift that risks deepening the fragmentation of global trade and causing lasting damage to both the US and world economies.
The latest round of tariffs, ranging from 10 to 12.5 percent on imports from 60 economies, was imposed on July 24 under Section 301 of the Trade Act of 1974, seamlessly taking effect after the expiration of the previous 10 percent global tariffs.
The move is part of a concerted effort by the US government to restructure the legal foundations of its tariff strategy, following the Supreme Court's decision in February to strike down its previous reciprocal tariff policy.
A series of further trade measures are anticipated in the coming months, including the ongoing Section 301 investigations into "excess capacity and production in manufacturing sectors" and pending probes initiated under Section 232 of the Trade Expansion Act of 1962 on national security grounds, which could soon translate into new tariffs.
John Ferguson, global head of trade and geopolitics at Economist Enterprise, said the US tariff policy is becoming more institutionalized as the administration seeks a more durable legal footing.
