What happened
Undeterred by Supreme Court rulings rejecting his tariff regime, President Donald Trump on Thursday launched a new workaround to continue taxing foreign imports. Under the new scheme, which replaces an expiring near-blanket 10% duty, the United States will introduce new tariffs of 12.5% on goods from trading partners, including China and Japan, that have allegedly failed to impose or enforce bans on goods produced with forced labor. Those deemed to have taken steps against forced labor, such as the United Kingdom and the European Union, qualify for a lower 10% rate. Goods from the 60 affected trading partners make up 99.4% of U.S. imports.
Who said what
“The real message here that everyone needs to take away is the president is going to always use the tools at his disposal to achieve his trade policy objectives,” a White House official told CNN. But “Trump’s new tariffs are angering voters,” said Politico. This latest move will only serve to “aggravate Americans who were already blaming the tariffs for stubborn inflation ahead of a midterm election dominated by economic issues.”
Trump has also “once again inspired anger and confusion in U.S. allies and trading partners,” said The Guardian. Many officials argued that the “rationale was hard to swallow.”
What next?
The tariffs are expected to face fresh legal challenges and risk in-kind retaliation. “Everything is on the table,” Canadian Prime Minister Mark Carney said after meeting with his provincial and territorial counterparts on Thursday to discuss a response.
The United States will introduce new tariffs of 12.5% on goods from trading partners
