U.S. Proposes Tariffs On 60 Economies Over Forced Labour Concerns

The United States government has proposed additional tariffs of up to 12.5 per cent on imports from 60 economies, accusing them of failing to ban goods made with forced labour and creating what it described as an uneven playing field for American workers.

The Office of the U.S. Trade Representative (USTR) announced the proposed duties on Tuesday, following months of investigations into trading partners under Section 301 of the Trade Act of 1974.

The tariffs still need to go through a public comment period before taking effect, with written submissions accepted until July 6, after which the USTR will hold hearings before making a final determination.

Of the 60 economies targeted, 54 were found to have “failed to impose and effectively enforce” bans on imports of goods produced with forced labour and would face an additional tariff of 12.5 per cent.

The remaining six economies, which were found to have failed to sufficiently engage with the U.S. on the issue, would face a 10 per cent tariff.

The announcement includes some of Washington’s largest and most important trading partners, including China, the European Union, the United Kingdom, Japan, India, Norway, Switzerland, Israel, Qatar and Saudi Arabia.

Goods from Canada and Mexico that comply with the North American free trade pact will be exempt, as will certain categories including beef, coffee and specific fruits and nuts.

U.S. Trade Representative Jamieson Greer said the action was necessary to protect American workers.

“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” he said. “This creates a dynamic where American workers are forced to compete globally on an uneven playing field.”

The move comes ahead of the July 24 expiry of a temporary 10 per cent tariff the Trump administration imposed on February 20, the day the Supreme Court struck down Trump’s sweeping global tariffs under the International Emergency Economic Powers Act.

The forced labour action represents Washington’s attempt to rebuild its broader tariff agenda through an alternative legal route that does not require congressional approval.
The proposal drew immediate criticism from trading partners.

The European Commission said it was reviewing the announcement and reserved the right to take countermeasures.

Several Asian governments also expressed concern, with South Korea’s trade ministry saying it would consult closely with the private sector on potential impacts.