In a significant shift in trade policy, the Trump administration has announced a new set of tariffs targeting over 80 countries, including major trading partners such as the UK, Canada, and China. This move comes as a replacement for a 10% global tariff that is set to expire soon and is part of a broader strategy to address concerns about forced labour in international supply chains.
New Tariffs Set to Take Effect
Late Thursday, US Trade Representative Jamieson Greer revealed that the new tariffs will range from 10% to 12.5%. This decision follows a ruling from the US Supreme Court in February that deemed many of Trump’s previous tariffs illegal. The administration is now invoking Section 301 of the Trade Act of 1974, which allows for tariffs against countries found to be engaging in unfair trade practices, particularly those involving human rights violations like forced labour.
“This action will help rectify both a human rights abuse and a distorting trade practice,” Greer stated. He expressed optimism about trading partners who have swiftly implemented prohibitions on imports linked to forced labour, highlighting the administration’s commitment to enforcing these regulations effectively.
The Controversial Nature of Tariffs
Historically, Trump has viewed tariffs as essential for safeguarding American jobs and manufacturing, aiming to correct what he perceives as unfair trading practices. He has described tariffs as “the most beautiful word in the dictionary.” However, the imposition of tariffs has faced significant legal scrutiny.
The Supreme Court’s ruling in February underscored that only Congress has the constitutional authority to levy taxes, a power that Trump attempted to navigate through the International Emergency Economic Powers Act. Following this setback, he quickly implemented another round of tariffs under a different trade law, which were limited to a 150-day duration. As these tariffs near expiration, the new tariffs aim to establish a more permanent framework.
Legal Concerns and Public Sentiment
Despite the administration’s confidence, experts question the legal grounds for these tariffs. Alan Wolff, a senior fellow at the Peterson Institute for International Economics, argues that the president lacks the authority to unilaterally dictate tariff policy. He cautioned that should these tariffs be challenged, they may not withstand judicial scrutiny.
Public opinion surrounding Trump’s tariffs has been largely unfavourable. A recent Harris Poll highlighted that 70% of Americans believe they are paying higher prices due to these tariffs. This sentiment spans across party lines, with a significant portion of Republican voters acknowledging the negative economic impact of the tariffs. Additionally, the ongoing geopolitical tensions have exacerbated inflation, with energy prices soaring and reaching a three-year high this past May.
Administration’s Position on Economic Impact
Despite widespread criticism, the Trump administration maintains that its trade policies have benefitted American consumers. In a tense exchange with Senator Elizabeth Warren, Greer contended that tariffs have not contributed to rising prices, asserting that core inflation has improved since early 2025. However, many consumers remain sceptical, particularly as the overall cost of living continues to rise.
Why it Matters
The introduction of these new tariffs reflects not just an aggressive stance on trade but also a significant pivot towards prioritising human rights within economic policies. As the midterm elections draw near, the implications of these tariffs could resonate profoundly with voters, potentially influencing electoral outcomes. The administration’s ability to navigate public sentiment and legal challenges will be crucial in determining the long-term effectiveness of these trade measures.
