U.S. President Donald Trump has announced sweeping new tariffs on 60 countries and trading blocs around the world, including the European Union (EU) and Japan.
Trump said the new tariffs are being imposed due to “forced-labor violations,” though there’s little to no evidence that such violations have occurred in most of the countries.
The new import duties range from 10% to 12.5% and will replace Trump’s temporary 10% global tariffs, which are set to expire.
The latest duties also arrive after Trump’s previous “Liberation Day” tariffs were ruled illegal by the U.S. Supreme Court and effectively removed.
Economists and political observers say that the new tariffs are also likely to face legal challenges and could be struck down by the courts if the Trump administration cannot prove its forced labour claims.
Still, the forthcoming tariffs will apply to 99.4% of U.S. trade, the Office of the U.S. Trade Representative said in news release.
Despite multiple legal setbacks, Trump continues to focus on tariffs as a tool for generating revenue and gaining leverage over America’s trade partners.
The Trump administration recently imposed 25% tariffs on most U.S. imports from Brazil, and 50% tariffs on a wide range of goods from Canada, which are set to begin in August.
The Trump administration said the latest tariffs are the result of an investigation into each country that found they failed to ban the use of forced-labor practices in trade with the U.S.
Hours after his Supreme Court defeat, Trump imposed a worldwide 10% tariff. But that tariff came with a 150-day timer that was set to lapse today (July 24).
Many economists refer to Trump’s tariffs as a regressive tax on U.S. importers, one that also raises prices for American consumers.
The Trump administration did say that goods compliant with the current free trade agreement between the U.S., Canada and Mexico will be exempt from the new tariffs.
Related Stories
