The United States is imposing new import tariffs on approximately 60 trading partners following claims that these nations failed to properly stop the import of goods produced by forced labour. According to US Trade Representative Jamieson Greer, the duties, which range from 10% to 12.5%, take effect on Friday. The action was taken under Section 301 of the Trade Act of 1974, which governs the enforcement of trade practices that restrict or burden American commerce.
Tariff Rates and Affected Nations
The Trump administration has established two tiers of tariffs based on the perceived efforts of trading partners to combat forced labour. A 10% tariff rate applies to 16 partners, including the UK, Canada, Mexico, the European Union, Taiwan, Ecuador, Indonesia, Argentina, El Salvador, Bangladesh, and Pakistan. The US Trade Representative’s office stated this lower rate is due to these countries taking some action to prevent forced labour.
The remaining 44 countries face a higher tariff of 12.5%, as the US determined they failed to impose and effectively enforce forced labour import prohibitions. These nations include Japan, India, Singapore, South Korea, Vietnam, and Australia.
Legal Strategy and the ‘Tariff Wall’
This move follows a series of legal setbacks for President Donald Trump’s trade agenda. Earlier this year, the US Supreme Court ruled that many tariffs imposed globally under emergency presidential powers—specifically those under the International Emergency Economic Powers Act (IEEPA)—were illegally enacted. Consequently, a blanket 10% global levy imposed after the February court ruling is set to expire this Friday.
Observers and analysts suggest the forced labour tariffs serve as a workaround to maintain what is described as a “tariff wall” without being viewed by courts as a presidential overstep. Senior White House officials told CNN that the president will not allow his objectives to be undermined because one tool is limited by a court. By utilizing Section 301, which has previously been tested in court, the administration aims to restore baseline tariff levels for partners accounting for over 99% of US imports.
Specific Exemptions and Sectoral Impacts
While the tariffs are broad, the administration has included several exceptions. Regarding Canada, the law firm White & Case notes that the USTR proposal includes exemptions for goods traded under the Canada-U.S.-Mexico Agreement (CUSMA). Prime Minister Mark Carney stated that this carveout ensures the “vast majority” of Canadian trade will not be impacted.
- Brazil: A 25% duty on certain Brazilian goods over unfair trade practices is due to take effect Wednesday.
Human Rights and Economic Justifications
Jamieson Greer stated that the action aims to correct both a human rights abuse and distortive trade practice
and noted that the US has rigorously enforced its own forced labour import ban for nearly a century.
While the White House insists these measures protect American workers and boost manufacturing jobs, economists warn that importing companies often pass these extra costs to shoppers, potentially making everyday goods like microwaves and coffee more expensive.
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