US imposes tariffs on 60 trade partners over forced labour claims

The United States has imposed new tariffs ranging from 10% to 12.5% on approximately 60 trading partners, covering 99.4% of US imports. The duties target countries accused of failing to effectively prohibit the importation of goods produced with forced labour. The measures, enacted by US Trade Representative Jamieson Greer under Section 301 of the Trade Act of 1974, replace a temporary 10% tax expiring on Friday. Countries that have committed to banning forced labour imports face the lower 10% rate, while those without such commitments face 12.5%. This move follows a US Supreme Court ruling earlier this year that struck down previous tariffs imposed under emergency powers.

The White House has stated that Trump’s second term has made the adoption of forced labour bans a "critical" part of reciprocal trade agreements. Ten trading partners have already agreed to enact bans on forced labour imports in reciprocal trade agreements, while other countries have enacted bans in response to recent US investigations. The Office of the US Trade Representative said the latest tariffs were being imposed on partners "for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour".

Greer invoked Section 301 of the Trade Act of 1974, which governs US trade enforcement of practices that burden or restrict American commerce. In a statement, Greer said the action would "begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere". He noted he was "encouraged by the trading partners who have moved quickly to adopt forced labour import prohibitions" and looked forward to ensuring their effective enforcement.

The policy shift comes after the US Supreme Court struck down previous tariffs imposed under emergency powers earlier this year, ruling that the president had exceeded his authority without congressional approval. Tens of billions of dollars have since been refunded to companies that paid the levies. The new duties replace a temporary 10% tax on foreign goods that expires on Friday, which had been introduced as a temporary solution following the court's decision.

The tariffs specifically target key economic partners including the UK, China, EU, Canada, Japan, and India. Earlier this week, the Trump administration invoked Section 338 of the Tariff Act of 1930 to impose 50% tariffs on products from Canada. The US and China have also been embroiled in a tit-for-tat tariffs war, which is currently on hold.

The US Trade Representative is currently investigating 16 countries over claims of manufacturing overcapacity, which could lead to additional duties later this year. Business groups and affected countries are expected to push back on the latest tariffs, with many trading partners already weighing potential legal challenges or retaliatory duties in response. Economists have warned that higher tariffs can make everyday goods, like coffee and microwaves, more expensive as importing companies pass extra costs on to shoppers.