US imposes up to 12.5% tariffs on 60 trade partners citing forced labour concerns
The United States has announced new tariffs ranging from 10% to 12.5% on about 60 trading partners, accounting for the vast majority of its imports, accusing them of failing to adequately prevent forced labour in their supply chains.
The duties, announced by US Trade Representative Jamieson Greer on Thursday, will take effect on Friday. Affected partners include the United Kingdom, China, the European Union, Canada, Japan, and India. The move comes as a temporary 10% tax on foreign goods introduced earlier this year expires.
This is the latest action in the ongoing trade tensions that have escalated since President Donald Trump returned to office last year. The US Supreme Court earlier this year ruled that many of the tariffs imposed globally under emergency powers were illegally enacted. Consequently, the administration has sought other legal bases to pursue its trade policies.
Last month, the White House first proposed duties of 10–12.5% on goods from dozens of countries over concerns they were not doing enough to combat forced labour. On Thursday, Greer, acting under Trump's direction, confirmed the tariffs would take effect.
"Today's action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere," Greer said in a statement. He invoked Section 301 of the Trade Act of 1974, which allows the US to enforce trade rules against practices that burden American commerce.
Earlier this week, the administration used a different statute, Section 338 of the Tariff Act of 1930, to impose 50% tariffs on products from Canada.
The Office of the US Trade Representative stated that the latest tariffs target partners "for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour." The new duties apply to the top 60 US trade partners, covering 99.4% of US imports.
The office noted that President Trump in his second term has made the adoption of a ban on imports made with forced labour a "critical" part of reciprocal trade agreements. So far, ten trading partners have agreed to enact such bans. Countries that have made commitments to adopt and enforce bans will face a 10% tariff, while those that have not will face a 12.5% rate.
Greer expressed encouragement at "the trading partners who have moved quickly to adopt forced labour import prohibitions, and look forward to ensuring their effective enforcement."
