Washington replaces expiring 10% levies with targeted tariffs to address forced labor concerns, sparking policy uncertainty.
The US has imposed new tariffs on more than 50 trading partners, replacing a temporary 10% levy set to expire. The move aims to combat forced labor in goods production, according to an administration official.
The original tariffs were struck down by the Supreme Court in February. Analysts at Commerzbank suggest the reshuffle is unlikely to impact FX markets immediately, as the effective tariff rate remains unchanged.
Markets remain cautious amid broader geopolitical tensions, including deepening Middle East conflict, ahead of preliminary July PMI data from the Eurozone, UK, and US.