Trump’s tariffs hit more than 80 countries Friday

President Donald Trump’s latest round of tariffs on more than 80 countries took effect Friday, expanding a trade policy that now reaches nearly all U.S. imports and adding a new layer of uncertainty for importers, retailers and consumers, including businesses tied to wine and other beverages.

The new duties apply under Section 301 of the Trade Act of 1974, a legal framework the administration is using after the Supreme Court struck down an earlier set of broad tariffs this year. According to a notice from the office of U.S. Trade Representative Jamieson Greer, affected countries now face tariffs of either 10% or 12.5%, depending on whether the administration says they have taken steps to address alleged forced labor violations.

The measure replaced a temporary 10% global tariff announced in February that expired the same day the new system began. Analysts said the shift may not sharply change the overall tariff burden in the short term, but it could give the administration a firmer legal basis to keep wide-ranging import taxes in place for longer.

For the beverage sector, that matters because tariffs can alter the cost of imported wine, beer and spirits, forcing wholesalers, retailers and restaurants to reconsider sourcing plans, pricing and inventory. The impact will vary by product and country, and some effects remain uncertain, but import-dependent parts of the drinks trade could face higher costs if tariffs remain in place or widen further.

ABC News reported that trading partners covered by the new round account for about 99% of all U.S. imports. Even so, exemptions for some food items, fuel, fertilizers and other goods are expected to soften part of the blow. Products that comply with the United States-Mexico-Canada Agreement are also exempt.

The administration says 17 trade partners will face a 10% tariff because they have made commitments to adopt and enforce forced labor import prohibitions. Those countries include Argentina and Bangladesh. Goods from the 27-member European Union and Taiwan also fall under a 10% tariff.

Another 41 countries will face a 12.5% tariff rate because, according to the administration, they have not adopted such prohibitions.

Economists and market analysts say tariffs are typically passed through at least in part to buyers through higher prices. That means households could see added pressure on budgets at a time when inflation has already picked up again. Businesses that rely on imported goods may also face narrower margins or be forced to raise prices.

The Yale Budget Lab said that before last week’s policy change, the average U.S. tariff rate stood at 11.4%. After Friday’s tariffs replaced the temporary across-the-board levy, that average edged down slightly to 11.1%. The group said the rate is expected to rise to 11.8% by the end of 2026 if additional proposed tariffs take effect.

That broader picture may still leave room for sharp changes in specific categories. Wine is one of them. On July 20, Trump imposed an additional 50% tariff on certain Canadian goods, including wine and hockey sticks. For U.S. wine importers and distributors that handle Canadian products, that move could raise landed costs quickly unless contracts, supply chains or product mixes change.

The inclusion of wine in the Canada action is notable because beverage alcohol often moves through long purchasing cycles and tightly managed distribution systems. Importers may not be able to switch suppliers easily in the middle of a season or sales program. Restaurants and retailers may also be reluctant to absorb higher costs on bottles already positioned for value-conscious customers.

The latest tariff actions came in rapid succession. On July 22, a 25% levy hit some Brazilian goods, including apparel and farm machinery. A day after the Canada move, Trump announced a 100% tariff on generic drugmakers set to take effect in 2028.

Jim Reid, a research strategist at Deutsche Bank, said in a note shared with ABC News that the main significance of Friday’s action may be legal durability rather than an immediate jump in economic damage. “Perhaps the most important takeaway is how little changes economically,” Reid said. “The announcement is less about raising tariff rates and more about preserving them.”

Reid said Section 301 offers “a considerably more robust foundation than the temporary emergency powers used previously.” He added that while Section 301 tariffs are not permanent and can still face review and legal challenges, they are generally seen as more resilient than the framework rejected by the courts earlier this year.

Not everyone agrees that the administration’s legal footing is secure. Alan Wolff, a former deputy director-general of the World Trade Organization, argued in a June blog post that broad Section 301 tariffs could still fail under legal scrutiny. He said Congress appeared to intend that authority for action against one country at a time rather than many countries at once.

If the tariffs remain in place over the next decade, they could generate as much as $900 billion in additional federal revenue, according to the Committee for a Responsible Federal Budget. The group said that figure would amount to less than 60% of what had been expected from the earlier levies struck down by the Supreme Court. Even so, it said those funds could modestly improve federal debt projections, putting debt at 122% of gross domestic product in 2036 instead of 125%.

For beverage companies, however, any fiscal gain for Washington does not remove day-to-day commercial pressure. Importers often work with thin margins and fixed shipping schedules. A tariff increase can affect everything from container planning to shelf pricing and promotional calendars. In wine especially, where origin is central to consumer demand, replacing one country’s product with another is not always simple.

The exemptions built into the new tariff structure may limit some disruption across food and agriculture supply chains, but they do not eliminate uncertainty for drinks businesses watching future trade actions country by country. If more beverage categories are named directly, or if current measures stay in place long enough to reshape contracts and pricing strategies, import costs could become a larger issue across parts of the U.S. alcohol market.

For now, analysts say Friday’s move signals something broader than a single tariff adjustment: import duties are becoming more embedded in U.S. economic policy. That leaves companies across consumer sectors preparing not only for possible price increases but also for a trade environment in which tariffs may no longer be temporary tools but an ongoing part of doing business.