Latest Round of U.S. Tariffs Based on 'Ludicrous' Claim -- Market Talk

0150 GMT - President Trump's decision to slap a 12.5% tariff on Australia on grounds that the country has inadequately enforced bans on goods produced by forced labor is "ludicrous," says David Bassanese, chief economist at Betashares. "This is obviously just a lame excuse to justify replacement tariffs for those struck down by the U.S. Supreme Court earlier this year," he adds. For the U.S., the tariff adds another source of price pressure just as the inflationary effects of earlier tariff increases were starting to ease, he says. Higher tariffs only increases the risk the U.S. Federal Reserve will raise interest rates later this year, he says. (james.glynn@wsj.com; X @JamesGlynnWSJ)

(END) Dow Jones Newswires

July 23, 2026 21:50 ET (01:50 GMT)