Trump maintains the trade war with new tariffs of between 10% and 12.5% for 60 countries

WashingtonIn its conviction to maintain the trade war, Donald Trump has announced a new tariff package that replaces the universal taxes that the Supreme Court annulled last February. The US president has signed a new executive order establishing levies of between 10% and 12.5% on 60 countries, including members of the European Union, China, and Mexico. The leader justifies this as retaliation against these states for not having taken sufficient measures to control imports of goods produced through forced labor.

The measure is scheduled to take effect at midnight on Friday, before the provisional tariffs that Trump applied in February after the Supreme Court's ruling expire. Products linked to national security, such as steel, aluminum, cars, and their manufacturing components, will not be subject to these new tariffs. Certain imported foods and agricultural products, as well as energy goods, are also not affected. For example, Mexico is one of the main suppliers of fresh produce found on U.S. shelves.

The new tariffs are based on Section 301 of the Trade Act of 1974, which is considered legally stronger than the emergency powers the tycoon used to impose the universal levies that the Supreme Court struck down. Once in effect, import taxes can be maintained indefinitely and can be unilaterally modified by the president himself.

Despite being another setback for the global economy, the real impact of these tariffs will be limited, as they only prolong the effect of the initial 10% tariffs that were in place.

By targeting forced labor directly, the White House is also indirectly seeking to damage the trade relations of two giants like India and China. Both have been in the eye of the storm for allowing foreign companies - including U.S. companies - to have workers in precarious conditions. India, for example, had a 12.5% tariff planned when Washington published a preliminary report in June, but it was eventually reduced to 10% after passing a law against forced labor. However, it is not clear what leeway countries will have to convince the Trump administration to eliminate its tariffs against forced labor.

Despite the White House wanting to spin the executive order as a measure to fight forced labor, it is clear that this is a new stratagem to continue applying the original universal tariffs. Immediately after the high court declared the taxes null, Trump lashed out at the judges and threatened with new levies "more powerful and harmful". In his appearance after the ruling, the Republican already warned that he could find other legal mechanisms to sustain his trade war or even aggravate it. It remains to be seen if this new measure will be challenged in the courts and if it will withstand legal scrutiny.

The news comes just at a time when the price of a barrel of crude oil exceeds 100 dollars, while the war in Iran is once again rushing towards a total conflict and the Houthis have initiated the first attacks on commercial ships in the Red Sea. After the Strait of Hormuz, practically inoperable, Bab el Mandeb is the other major critical point for the flow of global energy.