Washington imposes tariffs on goods from sixty economies
Washington has imposed tariffs of between 10 and 12.5% on goods from 60 economies, citing forced labour in supply chains. The duties were announced under Section 301 of the Trade Act of 1974 and their introduction coincided with the expiry of temporary worldwide tariffs of 10%. Analysts warn the measures will further strain Asia-Pacific economies already contending with high energy prices and the prospect of a strong El Nino.
The measures revive duties first imposed in April 2025 that were struck down by the US Supreme Court earlier this year. Reintroducing them under a different statutory authority indicates that the policy is being pursued regardless of the legal route required, which is the aspect exporters and their shipping lines are likely to weigh most heavily. A tariff that survives a court challenge by changing its legal basis is harder to plan around than one that is simply withdrawn.
Analysts quoted on the announcement were consistent in their assessment. Lavanya Venkateswaran of Oversea-Chinese Banking Corporation said the move shows President Trump remains committed to tariffs and described them as a key risk for regional policymakers. Michael Ricafort of Rizal Commercial Banking Corporation said the duties could slow exports, trade, investment and job creation, and warned of possible retaliation from Asian governments.
The burden is not distributed evenly. Yeah Kim Leng of Sunway University noted that manufacturing hubs in Thailand and Vietnam fall into the higher 12.5% bracket, leaving them at a disadvantage against regional competitors in the lower band. Both countries have absorbed substantial manufacturing capacity relocated from China in recent years, and a differential of this kind cuts directly against the logic of that relocation. He added that the measures may accelerate economic integration among Asian economies as an alternative to reliance on the American market.
Several governments voiced frustration, arguing the measures disregard concessions already made. Japan called the decision regrettable, with chief cabinet secretary Minoru Kihara insisting its trade practices follow international rules. Australian trade minister Don Farrell said the tariffs were unjustified, while Philippine trade secretary Cristina Aldeguer-Roque said Manila would continue to stress its strong policy against forced labour. For container lines on the transpacific, the immediate question is whether the duties depress volumes or merely shift them between origins, and the spread between the two brackets suggests the latter is more likely in the near term.
