The administration announced new tariffs on 59 countries and the European Union to address forced labor issues in global imports.
The administration announced overnight that it is imposing new tariffs on 59 countries and the European Union. These duties, which range between 10% and 12.5%, went into effect at midnight to replace a temporary 10% global tariff previously struck down by the Supreme Court. The administration stated that these new measures were implemented because the targeted countries are importing goods produced with forced labor. The new tariffs cover more than 99% of all imports to the United States, though major categories such as energy and various foods remain exempt. While Australia, Brazil, Chile, and New Zealand rejected the administration's justification for the move, Canada expressed measured concern. Notably, no major trading partner has announced retaliation yet, as most signal a willingness to continue negotiations with Washington. These trade actions follow a period of market volatility caused by escalating tensions in the Iran war, which saw oil prices spike and the S&P 500 and Nasdaq Composite experience significant drops.