Trump launches another tariff war: imposing taxes on 60 countries and regions including China, Japan, and South Korea. What’s different this time?
A wave of tariff policies is coming again? According to Xinhua News Agency, on July 23, local time, the Trump administration announced that it would impose new tariffs ranging from 10% to 12.5% on 60 trading partners, including the EU, starting from July 24. This time, the Trump administration’s justification for imposing tariffs was that these economies failed to “effectively enforce the forced labor import ban.” This is the latest move by the Trump administration to maintain its global tariff system through unilateral means. Analysts believe that this move will further disrupt the international trade order and increase the uncertainty of the global supply chain.
A wave of tariff policies is coming again? According to Xinhua News Agency, on July 23, local time, the Trump administration announced that it would impose new tariffs ranging from 10% to 12.5% on 60 trading partners, including the EU, starting from July 24. This time, the Trump administration’s justification for imposing tariffs was that these economies failed to “effectively enforce the forced labor import ban.” This is the latest move by the Trump administration to maintain its global tariff system through unilateral means. Analysts believe that this move will further disrupt the international trade order and increase the uncertainty of the global supply chain. How are the new tariffs different? According to the U.S. Supreme Court’s ruling on February 20, the so-called “reciprocal tariff” policy implemented by the Trump administration last year is unconstitutional and all illegally imposed tariffs must be refunded. As a result, the Trump administration has paid $81 billion in tariff refunds since this fiscal year, which begins in October 2025. Although the court ruled and the taxes were refunded, the Trump administration does not intend to give up. Instead, it is looking for other ways. The Trump administration had previously sworn to "impose a 10% global tariff on all countries" in accordance with Section 122 of the Trade Act of 1974. However, this policy has a time limit and will expire on July 24. As a result, the U.S. government found other ways to "extend" the tariff policy. On the evening of July 23, local time, the U.S. government announced that in accordance with Section 301 of the Trade Act of 1974, in the name of so-called "forced labor," it would impose tariffs of 10% to 12.5% on 60 countries and regions, including China, Japan, South Korea, India, and EU member states, starting from July 24. The reason given by the Trump administration is that these 60 countries and regions "are not doing enough to combat forced labor." The 60 countries and regions involved are the main trading partners of the United States, and trade with these countries and regions accounts for 99% of the total trade volume of the United States. In terms of specific countries, a 10% tax rate applies to about 10 economies that have implemented, partially implemented, or promised to implement a ban on the import of forced labor products, including Mexico, the United Kingdom, Canada, and India. EU goods are subject to a tax rate of at least 10%, products from Japan, Switzerland and South Korea are subject to at least 12.5%, and goods from dozens of other countries will face 12.5% tariffs. Section 301 tariffs basically have no expiration date. Although they are valid for 4 years, they can be renewed. This means that before U.S. President Trump leaves office, the U.S. government can impose taxes on countries around the world based on Section 301 as long as he wishes. U.S. Trade Representative Jamison Greer also said: “The actions we are taking today are not only about correcting countries’ practices that distort trade, but also about improving the well-being of workers around the world.” But this statement is not convincing to anyone, including loyal allies of the United States. New Zealand Prime Minister Lacson posted a message on social media criticizing the new tariffs as "extremely disappointing" and said that the United States had not provided meaningful evidence. Australian Trade Minister Farrell said the tariffs were "completely unjustified". Japan's Chief Cabinet Secretary Minoru Kihara also said that Japan "deeply regrets" the new tariffs and emphasized that its trade complies with international rules. The EU has also previously stated that tariffs imposed on these grounds are "unreasonable". Experts from many countries said that the so-called "forced labor" accusation is just an excuse to impose additional tariffs and is part of Trump's overall "America First" trade agenda. Oregon Democratic Senator Ron Wyden also criticized during a congressional hearing: "If the Trump administration really wants to take the issue of forced labor seriously, the first step should be to examine its own law enforcement record." Which countries are most affected? Among the 60 countries and regions that have been subject to additional tariffs, two countries are particularly unlucky, namely Brazil and Canada. Shortly before the new measures were announced, these two countries had already been targeted by the Trump administration for new tariffs. The United States first announced on July 15 that it would impose a 25% tariff on about one-third of Brazilian imports starting from July 22, accusing Brazil of unfair trade practices. Although the United States has maintained a long-term trade surplus with Brazil, Brazil has still become the target of additional U.S. tariffs.
Then on July 20, Trump signed multiple announcements, stating that based on Section 338 of the Smoot-Hawley Tariff Act of 1930 during the Great Depression, 50% tariffs would be imposed on hundreds of specific goods imported from Canada, including red wine, hockey sticks, cement and other products. The reason given by the White House is that Canada adopts "discriminatory treatment" against American alcohol, automobiles and dairy products. This tariff policy will take effect on August 19, Eastern Time. Brazil and Canada had no time to respond to the previous wave of tariff policies and were faced with the impact of new tariffs. According to Xinhua News Agency, Brazilian Minister of Development, Industry and Trade Marcio Rosa said that the Trump administration has imposed a 12.5% tariff on Brazilian goods. If this is combined with the recent 25% tariff on some Brazilian products, Brazilian footwear, machinery and equipment, parts, clothing and non-pharmaceutical chemicals and other industries will face a tax rate of up to 37.5%, and the industry may be severely impacted. The Brazilian government called the move "unjustifiable" and "arbitrary" and they would immediately initiate relevant procedures to safeguard national interests. It is reported that Brazil plans to impose retaliatory tariffs on the United States and lodge a complaint with the World Trade Organization. As for Canada, the 50% tariff policy will take effect on August 19, and now a 10% tariff will be imposed. Although he just attended the World Cup award ceremony with Trump, Canadian Prime Minister Carney said that in the face of the threat of US tariffs, the Canadian government will safeguard its national interests "at all costs" and resolutely protect and support its workers, farmers, businesses and families. The Canadian government has canceled the completion and opening ceremony of the new cross-border bridge that was scheduled to be held jointly with the United States. Canadian Minister of Housing and Infrastructure Robertson said that in view of the United States' trade measures, it is not appropriate to hold a joint celebration between the two countries at this time. Regarding the Trump administration's tariff policy, Elms, director of trade policy at the Hallish Foundation, pointed out that the new tariff policy shows that the Trump administration is determined to continue to promote its tariff strategy no matter how much resistance it encounters. Not only that, in the view of many international trade experts, the Trump administration has used this "breathing period" suppressed by the U.S. courts to perfect various alternatives, and will then maximize its pressure and retaliation. The Trump administration is likely to introduce more tariffs in the coming weeks. At present, there is news that the Trump administration has proposed to impose another batch of tariffs on 15 countries and the European Union under Section 301 to compensate for what the White House calls "unfair practices" in the manufacturing industries of these countries. An official said the investigation is ongoing.
Then on July 20, Trump signed multiple announcements, stating that based on Section 338 of the Smoot-Hawley Tariff Act of 1930 during the Great Depression, 50% tariffs would be imposed on hundreds of specific goods imported from Canada, including red wine, hockey sticks, cement and other products. The reason given by the White House is that Canada adopts "discriminatory treatment" against American alcohol, automobiles and dairy products. This tariff policy will take effect on August 19, Eastern Time. Brazil and Canada had no time to respond to the previous wave of tariff policies and were faced with the impact of new tariffs. According to Xinhua News Agency, Brazilian Minister of Development, Industry and Trade Marcio Rosa said that the Trump administration has imposed a 12.5% tariff on Brazilian goods. If this is combined with the recent 25% tariff on some Brazilian products, Brazilian footwear, machinery and equipment, parts, clothing and non-pharmaceutical chemicals and other industries will face a tax rate of up to 37.5%, and the industry may be severely impacted. The Brazilian government called the move "unjustifiable" and "arbitrary" and they would immediately initiate relevant procedures to safeguard national interests. It is reported that Brazil plans to impose retaliatory tariffs on the United States and lodge a complaint with the World Trade Organization. As for Canada, the 50% tariff policy will take effect on August 19, and now a 10% tariff will be imposed. Although he just attended the World Cup award ceremony with Trump, Canadian Prime Minister Carney said that in the face of the threat of US tariffs, the Canadian government will safeguard its national interests "at all costs" and resolutely protect and support its workers, farmers, businesses and families. The Canadian government has canceled the completion and opening ceremony of the new cross-border bridge that was scheduled to be held jointly with the United States. Canadian Minister of Housing and Infrastructure Robertson said that in view of the United States' trade measures, it is not appropriate to hold a joint celebration between the two countries at this time. Regarding the Trump administration's tariff policy, Elms, director of trade policy at the Hallish Foundation, pointed out that the new tariff policy shows that the Trump administration is determined to continue to promote its tariff strategy no matter how much resistance it encounters. Not only that, in the view of many international trade experts, the Trump administration has used this "breathing period" suppressed by the U.S. courts to perfect various alternatives, and will then maximize its pressure and retaliation. The Trump administration is likely to introduce more tariffs in the coming weeks. At present, there is news that the Trump administration has proposed to impose another batch of tariffs on 15 countries and the European Union under Section 301 to compensate for what the White House calls "unfair practices" in the manufacturing industries of these countries. An official said the investigation is ongoing.