US Imposes New Tariffs on Allies, Ignoring Court Ruling
The US has imposed new import tariffs on several countries, including Japan and Australia, sparking widespread criticism from its allies. The tariffs, which are worth 12.5 per cent, have been implemented under a new law that allows the president to impose duties for up to 150 days. However, this period has now expired, forcing Trump to find an alternative basis for his tariff policy.
The US Supreme Court had previously ruled that Trump's tariffs were largely voidable because he used an Emergency Act from 1977 without authority. Since then, the president has relied on a law from 1974, which allows him to impose duties under certain circumstances. The new tariffs have been imposed on goods from countries that are not deemed to be using forced labor.
The criticism of the US tariff policy comes from several quarters, including Australia and New Zealand. The Australian government has described the tariffs as 'unjustified' and in breach of a free trade agreement. The New Zealand Prime Minister, Christopher Luxon, has also criticized the tariffs, stating that they increase costs and uncertainty for businesses.
A member of the European Parliament, Kathleen Van Brempt, has also weighed in on the issue, saying that Trump's tariff policy is not concerned with forced labor but rather with maintaining his 'tariff wall'. She warns that Europe must respond to protect its economy if Washington does not stick to agreements.