United States Prepares to Impose New Tariffs on Around 60 Nations Globally
Washington is preparing to launch a new round of tariffs affecting approximately 60 countries in the coming days. This move underscores the US administration's adherence to protectionist trade policies, despite legal constraints imposed by Supreme Court rulings. In this round, the administration relies on investigations related to forced labor practices to provide a legal basis, rather than using emergency powers previously annulled by courts. This comes amid growing concerns about the tariffs' impact on inflation and living costs, especially ahead of congressional midterm elections. The Financial Times revealed US officials devised plans to replace temporary global tariffs of 10 percent, nearing expiration, with new duties ranging between 10 and 12.5 percent on imports from around 60 nations. According to the report, the US administration intends to rely on an ongoing investigation under Section 301 of the Trade Act of 1974, concerning forced labor practices, to provide legal cover for new tariffs. This replaces emergency powers the US Supreme Court rejected earlier this year. The report also indicated that the administration might subsequently initiate additional investigations, potentially paving the way for higher tariffs on certain trade partners. This new direction follows Washington's announcement of 50 percent tariffs on Canadian goods, plus 25 percent duties on Brazilian imports. This is considered part of a broader campaign aimed at reshaping US trade relations. Earlier this year, the Supreme Court invalidated "reciprocal" tariffs imposed by the administration in April 2025, which caused widespread global market disruptions and prompted officials to seek alternative legal mechanisms to continue their trade policy. The report stated high-ranking administration officials advocated for a more cautious approach, to preserve trade relations stability and adhere to agreements concluded by the US during 2025. Furthermore, the administration scaled back initial proposals by exempting essential consumer goods and reducing tariffs on certain steel and aluminum products. Investigations concerning critical minerals and aircraft parts recommended prioritizing negotiations over additional duties. This new round of tariffs comes as the US faces mounting inflationary pressures, driven by rising oil prices due to Middle East tensions, with average gasoline price exceeding four dollars per gallon, adding financial burdens on American households. A poll conducted earlier in July revealed that over two-thirds of American voters disapprove of the President's handling of the cost of living crisis, despite his previous election pledges to lower prices. Michael Smart, Managing Director at Rock Creek Global Advisors, stated that "the political climate and purchasing power concerns limit Trump's capacity to pursue a broader escalation of tariffs." Wendy Cutler, former US trade official and Vice President of the Asia Society Policy Institute, for her part, noted that increased tariffs "have not disappeared from the agenda, but require a more cautious approach, especially with midterm elections approaching in November." According to the report, proposed tariffs target countries Washington believes are not making sufficient efforts to combat forced labor. Concurrently, a separate investigation into industrial overcapacity includes major economies like the EU, China, India, Japan, Mexico, and South Korea, plus several Southeast Asian nations, signaling a potential widening of trade disputes in coming months.
