The news: The Trump administration is proposing new tariffs of 10% to 12.5% on 60 trade partners, including China, Brazil, the European Union, Canada, and Mexico, following the Supreme Court’s decision to strike down the “Liberation Day” duties.

The details: The US Trade Representative (USTR) said the countries being targeted for the fresh duties have failed to impose or effectively enforce a ban on the import of goods produced with forced labor. Those in the first category—including China, Vietnam, and India—face a tariff rate of 12.5%. Those in the latter group, which comprises the EU, UK, Canada, Mexico, Pakistan, and Ecuador, would only be subject to a 10% duty.

These duties may not be as wide-ranging as the “Liberation Day” tariffs. The USTR is seeking public comment on what types of “non-sensitive” imports from China could be subject to tariff modifications and has proposed a “textile mechanism” that would allow a certain amount of apparel and textile imports from certain countries to enter the US at reduced rates.

But they could also mark the start of a flurry of new tariffs. A separate investigation into excess manufacturing capacity could lead to new duties, while specific countries—including Brazil and Vietnam—could face higher tariffs following Section 301 investigations.

Implications for retailers: Many companies were counting on tariff relief to ease the pressure on their bottom lines and, in some cases, lower prices for consumers. But with rates inching up just as the war in Iran triggers a sharp increase in energy and input prices, retailers will have to decide how much of these costs to stomach and how much to pass on to the consumer.

Higher tariffs could force consumers to intensify their money-saving tactics. A September 2025 KPMG survey found that 50% of US adults were buying less overall in response to tariffs—a trend that is likely to accelerate as households grapple with rising cost-of-living pressures.

Go further: Read Live FAQ: How the US Supreme Court's Tariff Reversal Could Shift Retail and Search Growth.