US proposes 10 per cent tariffs on 60 nations citing forced labour concerns

The US Trade Representative (USTR) has proposed imposing additional tariffs of 10 per cent or more on 60 trading partners, following an investigation into the importation of goods allegedly produced with forced labour. The proposal, which is currently open to public comment, seeks to address what the administration describes as an unlevel playing field for American workers. USTR Ambassador Jamieson Greer stated in a report released on Wednesday that 60 economies had failed to effectively enforce a prohibition on the importation of goods produced with forced labour, describing this failure as a burden to US commerce.

The proposed measures divide the affected nations into two tiers based on their compliance status. A 10 per cent additional tariff would apply to countries including Canada, Mexico, Taiwan, Pakistan, the UK, and EU nations. These economies are considered to have imposed prohibitions, undertaken commitments, or partially prevented the import of forced labour goods. A higher 12.5 per cent tariff would be imposed on 45 other economies, including China, India, Japan, South Korea, Brazil, and Switzerland, which the USTR determined failed to impose and effectively enforce such prohibitions.

The proposal is intended to circumvent a US Supreme Court ruling in February which declared that previous tariffs imposed by the administration were largely illegal. By utilising trade laws related to forced labour, the Trump administration aims to bypass the judicial constraints that previously limited its tariff authority. The USTR initiated 60 investigations into forced labour practices in March, concluding that the alleged failure to prohibit such imports was subjecting US producers to unfair competition in both domestic and export markets.

This latest wave of tariffs is likely to disrupt ongoing diplomatic and trade negotiations. The European Union recently approved a trade deal with Washington to cap tariffs on most EU exports at 15 per cent, a consensus reached after some member nations threatened to block the agreement. Similarly, a US delegation is currently in New Delhi to finalise a trade deal with India, following the imposition of high tariffs last year that significantly soured ties between the two strategic powers. India’s Commerce Minister Piyush Goyal indicated that key details of the deal were already settled.

The proposal also complicates recent diplomatic efforts to stabilise relations with other major economies. US Secretary of State Marco Rubio visited India in May to smooth over diplomatic ties, while President Donald Trump recently visited China to discuss expanding market access for American goods. The USTR will hold hearings on the proposed tariffs on 7 July, as the administration moves forward with what Greer described as a necessary step to ensure trade does not perversely encourage forced labour globally.