The US has imposed a new baseline tariff of 10% to 12.5% on imports from nearly 60 countries and the European Union, replacing earlier levies and reinforcing President Donald Trump’s protectionist trade agenda. The move, justified on forced labor concerns, lifts the average effective US tariff rate to 10.7% and avoids any gap after previous tariffs expired.
While several countries including Australia, Japan and Singapore criticized the decision as unjustified, none have announced immediate retaliation. Markets largely treated the move as a continuation of existing policy, though legal experts warned the broad use of Section 301 could face fresh court challenges.
Uncertainty remains over the economic impact, particularly on inflation and growth amid already high energy prices. Further tariffs, including those targeting excess industrial capacity, are still under consideration, signaling continued trade tensions and potential risks for global economic stability.