Trump's new global tariff draws rebukes from trade partners

Key Points:

• The U.S. imposed new tariffs under Section 301 on 60 countries, citing their failure to ban goods made with forced labor, with rates of 10% or 12.5% depending on compliance status; these tariffs cover 99.4% of American imports and replace a temporary 10% tariff set to expire July 24.
• Major U.S. trading partners, including Australia, Brazil, Chile, Canada, and New Zealand, have rejected the forced-labor rationale, calling the tariffs unjustified and inconsistent with trade agreements, though most expressed willingness to continue negotiations rather than retaliate.
• The tariffs impose a 12.5% duty on imports from countries like Australia, China, Singapore, and South Korea, while others like Malaysia, Taiwan, Indonesia, and India face a 10% tariff; exemptions apply for certain goods such as electronics and USMCA-compliant products.
• Economists suggest the impact on major Asian economies will be limited due to tariff carve-outs on key electronics, and no major trading partner has yet announced retaliatory measures in response to the new tariffs.
• Critics, including the Peterson Institute for International Economics, argue the investigation is less about labor standards and more about enforcing U.S. import bans on Chinese goods and reinstating a tariff regime previously struck down by the Supreme Court.