US hits dozens of trading partners with new wave of tariffs
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- US Trade Representative Jamieson Greer announced new tariffs of 10-12.5% on 60 trading partners covering 99.4% of US imports, replacing an identical levy that expired Friday and justified by claims of inadequate forced labor enforcement
- Caroline Freund, dean of UC San Diego's School of Global Policy and Strategy, said the forced labor rationale is a 'legal reason to put the tariffs in,' with the real goals being trade deficits and US manufacturing
- The UK lost comparative advantage against the EU — per British Chambers of Commerce head William Bain, the EU secured a 10% all-inclusive deal while the UK faces 10% universal tariffs on top of duties on individual goods
- Brazil, Japan, and Australia publicly criticized the levies, with Brazil calling its 12.5% rate 'unjustified,' Japan expressing regret, and Australian Trade Minister Don Farrell deeming the move 'completely unjustified'
- China denied all forced labor allegations, with foreign ministry spokesperson Mao Ning stating 'there is no so-called forced labour in China,' though international human rights groups confirm forced labor exists among Muslim ethnic minorities in Xinjiang
- The US Supreme Court earlier this year struck down Trump's emergency-powers tariffs as exceeding presidential authority, triggering tens of billions in refunds; the administration is now investigating 16 additional countries over manufacturing overcapacity for future duties
Why it matters: The Supreme Court killed Trump's emergency-powers tariffs, so the administration is using forced labor as a new legal vehicle to keep duties on 99.4% of US imports intact. The UK's loss of relative pricing versus the EU signals that bilateral deal-making — not blanket levies — will increasingly determine who gains under Trump's tariff regime.
