Why Trump’s Renewed Trade War Could Be Costly

Andrew here. Tariffs are back. The Trump administration put new levies into effect around midnight in Washington. But unlike last time, businesses saw these coming, so don’t expect the same frantic scramble to shore up global trade and supply chains.

While these new measures appear more legally defensible, court challenges are still inevitable. More important, let’s be honest about what the tariffs are: the administration’s primary tool for negotiating leverage — even as the levies raise fresh questions about the future of U.S. relationships with trade partners.

One-two punch

Markets are rebounding on Friday, despite growing worries that a new front in the Middle East war could drag down the global economy. Now, President Trump has added to the turmoil by stepping up his trade war.

New U.S. tariffs of at least 10 percent went into effect overnight for over 80 countries. Trading partners, including Japan, Australia and Brazil, have criticized the levies. The duties have been issued under Section 301 of the Trade Act of 1974 and are meant to target allegations of lax enforcement of forced labor bans. They appear more durable than previous ones, experts say.

Article source: https://www.nytimes.com/2026/07/24/business/dealbook/trump-trade-war-economy.html