Australia, Brazil, Chile, and New Zealand reject U.S. tariffs targeting forced labor concerns, raising trade war risks for markets.
The Trump administration imposed new tariffs of 10% or 12.5% on imports from over 60 countries, covering 99.4% of U.S. imports. The move follows a February Supreme Court ruling blocking emergency-powers tariffs, with the administration citing forced labor violations by trade partners.
Australia, Brazil, Chile, and New Zealand issued formal objections, warning of escalating trade tensions. The tariffs target nearly all U.S. imports, a broader scope than previous measures, and could disrupt supply chains amid already fragile global trade relations.
Markets may face heightened volatility as investors assess retaliation risks and the potential for prolonged trade disputes. The S&P 500 and global equities could react to further policy shifts or countermeasures from affected nations.