# Trump's new tariffs could pave the way for broad tax applications Experts warn new tariffs could set a precedent for future presidents. - **Source:** [Fortune | FORTUNE](https://brifing.si/source/769282ef-327a-4454-909a-3c7936216004) - **Published:** 2026-07-24 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/4153be80-836d-4185-a9c4-262de44a952c ## New tariffs take effect President Donald Trump's new tariffs covering 60 countries went into effect on Friday. Ranging from 10-12.5%, these taxes are implemented under the pretext of 'forced labor.' Unlike previous global tariffs, this move is based on Section 301 of the 1974 Trade Act. ## Stronger legal footing The new tariffs replace Trump's previous taxes implemented under the International Emergency Economic Powers Act, which were rejected by courts. Experts note Section 301 provides a more solid legal basis. However, this could set a dangerous precedent for future presidents. ## Limited economic impact but significant risk Since they replace previous tariffs, the new taxes are expected to have limited short-term economic impact. However, Scott Lincicome from the Cato Institute warns this practice could enable any future president to impose tariffs under any pretext. ## Legal process questioned Experts argue the 'forced labor' justification for the new tariffs is based on thin evidence and that the rates are disproportionate to actual trade impact. Lincicome describes this move as 'a clear abuse of the law.' ## Courts may approve Despite legal criticisms, courts are likely to approve the new tariffs. Experts note the judiciary may avoid challenging the administration's decisions. Congress is also not expected to intervene. ## Dangerous precedent for the future Warnings suggest Section 301 could be used in the future to impose tariffs under any pretext, including carbon emissions, labor standards, or AI regulations. This signals a lasting shift in U.S. trade policy. ## Sources covering this story - https://fortune.com/2026/07/24/trump-section-301-precedent-trade-war-effective-rate-import-taxes/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._