Economics

The Trump administration is proposing that tariffs of 10% or more be imposed on products from dozens of major trading partners following a probe into imports of goods allegedly made with forced labor.

The report released early Wednesday by the U.S. Trade Representative said Canada, Mexico, Taiwan and the United Kingdom and some other countries and territories would face 10% additional tariffs for allegedly failing to enforce a forced labor import ban.

A 12.5% additional tariff would be imposed on China, Japan, India, South Korea, Brazil and Switzerland and dozens of other countries.

KEY POINTS

China reduced its stash of Treasury to $652.3 billion, the lowest level since September 2008.

Japan, the single largest foreign holder, shed approximately $47 billion to $1.191 trillion.

The U.S.-Iran conflict and a subsequent surge in crude oil prices sent currencies tumbling.

China has been gradually reducing its direct Treasury exposure since its peak in 2013, “shadow holding” in custodial countries.

World shares mostly retreated and oil prices jumped on Monday after U.S. President Donald Trump warned Tehran that the “clock is ticking” as U.S.-Iran negotiations over a permanent end to the war stall.

U.S. futures fell and markets in Japan and South Korea pulled back from their records. In early European trading, Britain’s FTSE 100 edged up 0.1% to 10,205.31. France’s CAC 40 lost 0.9% to 7,883.42, and Germany’s DAX dropped 0.1% to 23,925.82.

Economists predict the Consumer Price Index will have risen to 3.8% in April, up another 0.6% from March.

The Consumer Price Index is widely expected to show inflation has risen to a nearly three-year high when April’s data is released Tuesday morning.

The Iran war’s wide-ranging economic fallout has caused prices to spike, and economists and analysts project that inflation will hit 3.8%, up 0.6% from March to April, according to a survey from Dow Jones.

April’s inflation reading follows an even sharper 0.9% jump from February to March. Last month’s increase was the largest month-to-month jump since 2022.