President Donald Trump has not stopped using tariffs. In February, the Supreme Court ruled that the president’s previous attempt at emergency-powers tariffs was unconstitutional. Now Trump is trying a new strategy. On July 24,, the Trump administration announced new tariffs of 10% or 12.5% on imports from more than 60 countries, covering approximately 99.4% of U.S. imports. The administration claims that these countries are failing to do enough to prohibit the use of forced labor.
Other countries aren’t happy about the new Trump tariffs. Australia, Brazil, Chile, and New Zealand have all issued statements of disagreement and objection. It’s possible that the new tariffs could lead to more trade tensions, if not an outright trade war.
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Let’s look at a few reasons the new tariffs might not cause a “tariff tantrum” in the stock market — and how you might want to keep investing in the global economy.
Image source: Getty Images. Why Trump is using new tariffs
Trump is effectively accusing some of America’s largest trade partners of using illegal forced labor or allowing products to be imported that were made with forced labor. Forced labor is bad, not only because of what it does to those workers, but because it undercuts wages for U.S. workers.
The Supreme Court ruled in February that Trump doesn’t have the authority to use “emergency powers” to issue tariffs. But claiming that other countries are enabling forced labor could be a stronger legal strategy for the Trump administration to justify its new tariffs.
Unlike when Trump announced his “Liberation Day” tariffs in April 2025, the stock market didn’t crash this time. As I write this, the S&P 500 index is up slightly since Friday’s new tariff announcement. Investors seem to be taking the tariff news in stride. No one knows yet if the new Trump tariffs will have a big impact on stock prices.
Other countries will try to find exemptions and carve-outs to allow their companies’ exports to avoid the new tariffs. The new tariffs might also be fought in court and ruled illegal, just like the last batch. Two small businesses have already filed a lawsuit challenging Trump’s new tariffs.
With all the uncertainty, how should you invest? U.S. companies pay tariffs — not the countries — and even if international trade tensions grow, I think it makes sense to keep investing in companies across the globe. Here’s an exchange-traded fund (ETF) that lets you buy the entire global economy at once.
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