US declares "war" on forced labor - Additional 10-12.5% tariffs on goods imported from 60 countries
The Trump administration proposed imposing additional tariffs of 10% or 12.5% on imports from 60 economies, including the European Union and the United Kingdom, arguing that their failure to adequately prevent trade in goods produced with forced labor unfairly burdens American trade.
The move comes ahead of the July 24 expiration of temporary tariffs imposed after Trump's IEEPA tariff regime was repealed in February. A report released by the U.S. Trade Representative (USTR) said 54 economies, including the United Kingdom, Norway, Switzerland, Japan, India, Israel, Qatar and Saudi Arabia, have failed to effectively implement and enforce bans on imports made with forced labor. Under the proposal, they would face an additional 12.5% tariff.
Meanwhile, six economies will face an additional 10% tariff due to alleged failure to effectively enforce existing restrictions on imports made with forced labor.
The six economies are Canada, the European Union, Ecuador, Indonesia, Mexico and Pakistan. According to the USTR, they already have measures in place to restrict imports made with forced labor, but are not enforcing them effectively.
"The failure of our most important trading partners to address the import of goods produced using forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an uneven playing field," the U.S. Trade Representative said in a statement.
The proposed measures could unsettle major U.S. trading partners, many of whom have already faced several rounds of tariffs since President Donald Trump returned to office. The move comes just weeks after the European Union reached a deal with Washington to cap tariffs on most EU exports at 15%, following intense negotiations among the bloc's 27 member states. The new tariffs will not take effect immediately. They remain subject to public consultation and review.
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