Global Condemnation Follows Trump’s New Tariffs, With Brazil Threatening WTO Action

SYDNEY/BRASILIA/MEXICO CITY: Australia said on Friday that the new tariffs introduced by President Donald Trump “make no sense,” while Brazil condemned them as “arbitrary and unjustified” and warned of retaliation and legal steps.

Mexico, for its part, said the measures would have little practical effect on its exports, as most goods remain covered by the United States‑Mexico‑Canada Agreement.

The reactions followed Trump’s decision to impose new tariffs ranging from 10% to 12.5% on imports from 60 trading partners, accusing them of inadequate enforcement of bans on goods made with forced labor.

The tariffs have provoked an immediate international backlash, with governments questioning Washington’s justification and warning of potential disruption to global trade.

Australia: ‘This really makes no sense’

Australia expressed disappointment over the new tariffs, which will raise the effective duty on its exports to the United States from 10% to 12.5%.

“This really, in our view, makes no sense,” said Australian Defense Minister Richard Marles on ABC Radio.

Brazil: Tariffs are ‘arbitrary and unjustified’

Brazil’s response was sharper, accusing Washington of exploiting a human‑rights issue to advance a protectionist trade agenda.

Brazilian exports to the United States will now face a 12.5% tariff under the new measure.

“Lacking a legal basis under domestic law to support its protectionist trade policy, the US Trade Representative chose to manipulate an issue of great importance to human rights and workers’ rights movements,” the Brazilian government said.

Brasilia said it would immediately begin procedures to trigger retaliatory measures under its “Reciprocity Law” and would take the dispute to the World Trade Organization.

The new tariffs follow a separate 25% duty that the Trump administration imposed on several Brazilian goods last week, citing unfair trade practices.

President Luiz Inácio Lula da Silva has said he remains open to negotiations with Washington but would seek alternative markets if Brazil could not sell its products in the United States.

Mexico: Little change in effective tariff treatment

Mexico stated there would be no significant change in the effective tariff treatment of its exports to the United States.

Economy Minister Marcelo Ebrard said exemptions under the USMCA meant about 85% of Mexican exports would continue to enter the United States tariff‑free.

Another 10% of Mexican goods are subject to separate tariffs under Section 122 of the Trade Act of 1974. Those duties expire Friday and will effectively be replaced by the new tariffs, Ebrard said in a video posted on social media.

“One replaces the other, so tariff treatment is maintained,” he said.

A senior Trump administration official said many goods would be exempted from the new tariffs, including products that comply with the USMCA.

Canada prepares for separate tariff threat

Canada is intensifying negotiations with Washington but is prepared to respond if Trump’s separate threat to impose 50% tariffs on Canadian goods takes effect, Prime Minister Mark Carney said on Thursday.

The tariffs, announced on Monday, are scheduled to take effect on August 19.

“If these tariffs, or other measures, come into force, there’s a full range of things that we can do in that regard,” Carney said after meeting with provincial and territorial leaders.

“Everything’s on the table” if no agreement is reached, he said, while cautioning that Canada did not need to retaliate in advance.

The proposed tariffs would cover goods including honey, liquor, cement, dairy products, some wood products and hockey sticks. Energy products, potash, fish and critical minerals would be excluded.

Carney said the threat could be part of a U.S. negotiating strategy, noting that Washington had previously used deadlines accompanied by large tariff threats in trade talks.

New tariffs follow Supreme Court defeat

The latest measures mark a new phase in Trump’s effort to use tariffs as a central instrument of U.S. economic policy.

The tariffs are being imposed just as temporary 10% worldwide levies expire at 12:01 a.m. Friday.

Trump had imposed those levies after the U.S. Supreme Court struck down his broader tariff program in February. The administration is now relying on Section 301 of the Trade Act of 1974, which permits the president to impose tariffs and other sanctions against countries found to engage in “unjustifiable,” “unreasonable” or “discriminatory” trade practices.

The administration has also launched a probe into whether 16 countries, accounting for about 70% of U.S. imports, have overproduced goods and driven down prices to the disadvantage of U.S. companies.

Trump has argued that high tariffs will revive American manufacturing and last year overturned decades of U.S. policy favoring lower tariffs and freer trade.

He previously invoked the 1977 International Emergency Economic Powers Act to impose double‑digit tariffs on imports from almost every country, claiming the U.S. trade deficit constituted a national emergency. The Supreme Court ruled that the law did not authorize tariffs, forcing the administration to refund importers who had paid the duties.

The administration then imposed temporary worldwide tariffs under Section 122 of the 1974 Trade Act. Those levies can remain in place for only 150 days.

Forced labor: human rights issue or trade pretext?

The new tariffs target countries that Washington says have failed to impose or effectively enforce bans on goods made with forced labor.

Some products, including oil, gas and fertilizer, are exempted.

The administration initially proposed the tariffs last month, but some countries tightened their enforcement of forced‑labor bans and qualified for lower rates. India, for example, initially faced a proposed 12.5% tariff that was later reduced to 10%, a senior U.S. administration official said.

The move has drawn criticism in the United States, including from Rep. Richard Neal of Massachusetts, the top Democrat on the House Ways and Means Committee.

“Forced labor is a real and pervasive problem in our supply chains and demands serious enforcement,” Neal said, but argued that the issue should not be used to justify a broader tariff policy based on “dubious legal theories and personal grievances.”

Human rights advocates have acknowledged that import bans can help combat forced labor but warned that tariffs alone are not a comprehensive solution. They have called for greater transparency, stronger enforcement mechanisms and assistance for countries seeking to implement effective import bans.

Some experts said the tariffs could nevertheless encourage governments to strengthen their laws. Several countries, including India, have amended trade policies to include forced‑labor import bans, while European Union regulations on forced labor are also due to take effect next year.

The International Labour Organization estimates that about 27.6 million people were living in forced labor worldwide on any given day in 2021.

The tariffs also carry domestic political risks for Trump because U.S. importers pay the duties and often pass the added costs on to consumers through higher prices.

The measures come as Americans remain concerned about the cost of living and ahead of the November 3 midterm elections.

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