WASHINGTON (Dispatches) - The United States on Friday imposed new tariffs of 10% and 12.5% on goods from 60 trading partners, including the EU and China, alleging those countries failed to curb imports made by forced labor, just as a temporary 10% global tariff expired.
The move is the White House’s first step in efforts to rebuild President Donald Trump’s near-global tariff wall after the U.S. Supreme Court in February struck down his “reciprocal” duties of 10% to 50% imposed last year under a national emergencies law to try to shrink the U.S. ‌trade deficit.
New tariffs had been expected, but trade partners around the world joined in strongly disputing the justification for them. Some, however, noted they would make no difference to current levies or even marked a slight improvement.
Bond yields edged higher as the tariffs added to inflation risk, but reaction was generally limited in financial markets more focused on the Middle East conflict.
The new tariffs, announced in a Federal Register notice, opens new tab, cover 99.4% of U.S. imports, but include numerous product exemptions, such as oil and gas, fertilizer and certain food items.
The U.S. claims that trading partners had failed to clamp down on trade in goods made with forced labor passing through their supply chains, an accusation those countries deny.
The U.S. imposed a 10% duty on goods of Argentina, Bangladesh, Britain, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago saying they had bans or plans to ban forced labor imports but were not effectively enforcing such prohibitions.
The European Union, Taiwan, Japan, South Korea and Switzerland were assigned rates that, combined with pre-existing most-favored-nation tariff rates, totaled 10% or 12.5%.
Canadian Prime Minister Mark Carney has said that retaliatory measures are being considered if his government fails to reach a deal with U.S. President Donald Trump before new U.S. tariffs take effect, local media reported.
“Everything is on the table” depending on the outcome of negotiations with Washington, said Carney at a press conference following a meeting with provincial and territorial leaders in Charlottetown, Prince Edward Island.
Regarding possible retaliation if and when the new tariffs come into effect next month, Carney said, “there’s a full range of things that we can do in that regard.”
“We don’t need to respond in advance,” he said, “In fact, I think it would be counterproductive at this stage to respond in advance.”
On Thursday morning, Carney said that his government would do “whatever it takes” to defend Canada’s national interests in response to recent U.S. tariff threats, stressing that Canada would protect and support its workers, farmers, businesses and families amid trade pressure from Washington.
“We are in a stronger position than we were when this trade war started 18 months ago,” Carney said. “We’re in a stronger position because of the determination of Canadians themselves, and the focus of the premiers around this table.”
Trump on Monday signed proclamations to impose an additional 50 percent tariff on certain Canadian goods, accusing Canada of discriminating against U.S. commerce.
The additional 50 percent ad valorem duties on certain dairy products, alcoholic beverages, motor vehicles and related goods will take effect on Aug 19, according to documents posted on the White House website.
In response, Carney on Monday described the new U.S. tariffs as “the latest in a series of unilateral U.S. trade actions in direct violation of the Canada-United States-Mexico Agreement.”
Carney said on Tuesday that he had spoken with Trump and the two sides had agreed to intensify trade negotiations.