The Trump administration announced tariffs ranging from 10 to 12.5 percent on 60 trading partners, including the United Kingdom, European Union, Canada, Taiwan and Australia, citing failures to adequately address forced labor in their supply chains. The move represents a strategic shift in how the administration justifies its trade policies following a major legal setback.
The Supreme Court struck down many of the administration's previous tariffs in February, ruling that the president lacked legal authority to impose them under a 1977 emergency statute. Chief Justice John Roberts wrote the majority opinion, joined by two Trump appointees, Justices Neil Gorsuch and Amy Coney Barrett. The three remaining conservative justices dissented.
By anchoring the new tariffs to forced labor concerns rather than emergency powers, administration officials believe they have found a more legally durable approach. Legal experts suggest this rationale may withstand court challenges better than the previous statutory basis, though critics argue the forced labor justification serves as cover for protectionist policies rather than a genuine human rights initiative.
The proposed tariffs immediately drew pushback from trading partners. The European Union said it expected the United States to honor a tariff agreement reached in July and argued that these new duties breach the spirit of that accord. Brazil's President Luiz Inácio Lula da Silva expressed indignation over separate 25 percent tariff proposals, claiming the administration was influenced by political opponents ahead of Brazil's elections.
The announcement comes as the administration manages the fallout from the Supreme Court ruling. Officials launched a digital claims system called Cape on Monday to process refunds for more than $166 billion in tariffs that were declared illegal. Customs officials acknowledged in court filings that they had to build an entirely new processing infrastructure from scratch, initially lacking even the basic capability to deposit money directly into most importers' accounts.
More than 3,000 companies have sued to secure their refunds, including high-profile businesses like Skechers, Revlon, Toyota, Nintendo of America, FedEx and Costco. Only companies that officially paid the tariffs, primarily importers and large corporations, are legally eligible to claim refunds. Ordinary consumers who absorbed costs through higher prices on electronics, clothing and other goods have no direct recourse.
The refund system will initially process claims only for entries that are unliquidated or liquidated within the past 80 days. Businesses whose goods are tied up in legal disputes or anti-dumping investigations cannot claim yet. Companies can expect to wait 60 to 90 days from submission to receive their money.
Whether consumers see any benefit depends on individual businesses. FedEx has committed to passing refunds to customers, while Costco suggested it could lower prices, though some shoppers are already suing the retailer over whether price reductions will actually materialize.