New Tariffs Take Effect
The Trump administration imposed new tariffs of 10 percent and 12.5 percent on imports from over 80 countries, effective Friday. The measures, announced under Section 301 of the Trade Act of 1974, replace a temporary 10 percent global tariff that expired Thursday night. The U.S. Trade Representative justified the levies by alleging that the targeted countries failed to adequately enforce bans on goods produced with forced labor, stating that it is past time for trading partners to do the same. Many of the affected nations have rejected this claim. The tariffs cover approximately 99.4 percent of U.S. imports but include exemptions for products such as oil, gas, and certain foods. The new duties come after the Supreme Court ruled earlier this year that Trump’s earlier sweeping tariffs were illegal, prompting the administration to seek alternative legal basis.[S1][S2][S3][S4]
Global Reactions
Australia’s Trade Minister Don Farrell called the tariffs unjustified and inconsistent with the free trade agreement, while Defense Minister Richard Marles said the move made no sense. New Zealand Prime Minister Christopher Luxon described the decision as extremely disappointing and noted that the U.S. investigation did not provide meaningful evidence. The United Kingdom said the new measures would have no negative change on exports, as previous agreements exempted several industries. Mexico’s Economy Minister Marcelo Ebrard said around 85% of Mexican exports would remain tariff-free under the USMCA, and another 10% would see no net change as one tariff replaces another. Norway’s foreign minister said there was no basis for the tariff as Norway already has clear rules against forced labor.[S1][S3][S5][S6]
Japan’s Chief Cabinet Secretary Minoru Kihara expressed regret, stating that Japanese industry and trade operate in accordance with international norms; he added that Japan had confirmed with the U.S. that total tariffs would not exceed a 15% rate set in a previous trade agreement. The European Commission noted positively that the outcome was in line with the EU-US Joint Statement, but EU foreign policy chief Kaja Kallas said the rationale was not grounded, pointing to the EU’s strong labor protections and noting that the bloc had honored a previous deal. She added that the tariffs were a negative surprise.[S1][S3][S5]
Brazil, China, India Respond
Brazil condemned the tariffs as completely arbitrary and unjustified, accusing the U.S. of manipulating a human rights issue for protectionist purposes. The government said it would immediately trigger procedures under its Reciprocity Law and take the matter to the World Trade Organization. China’s foreign ministry spokesman Lin Jian reiterated opposition to all forms of unilateral tariffs, stating that tariff wars do not serve any party’s interests, and noted that Trump and President Xi are expected to meet in September. India’s textile industry expressed concern over exclusions from tariff exemptions, risking diversion of sourcing orders; the chairman of the Confederation of Indian Textile Industry said the differential treatment could harm Indian exports.[S1][S3][S5][S6]
Markets Hit by New Tariffs
The announcement of the new tariffs led to significant declines in Asian stock markets. Japan’s Nikkei 225 fell 3.1 percent, China’s SSE Composite dropped 1.4 percent, Hong Kong’s Hang Seng slumped 11.4 percent, and South Korea’s Kospi declined 6.2 percent. European markets showed a mixed picture, with the Stoxx 600 initially falling 0.7 percent before steadying. France’s Cac 40 and Germany’s Dax also experienced volatility, while the FTSE 100 rose 0.28 percent in early trading.[S5]
