Trump slaps 12.5% tariffs on 60 nations over forced labor

The Trump administration announced Thursday that it will impose tariffs of up to 12.5% on goods from 60 U.S. trading partners accused of failing to adequately combat forced labor. The levies, set to take effect at 12:01 a.m. Friday, mark the latest effort by President Donald Trump to revive his system of country-by-country tariffs after a Supreme Court ruling earlier this year struck down most of them.

New Tariffs Target Forced Labor Practices

Most of the affected nations, including China and Vietnam, will face a 12.5% tariff rate. A lower 10% rate applies to 17 countries that have some prohibitions on forced labor, such as the United Kingdom, Canada, and Mexico. Five additional trading partners—including the European Union—will face an extra levy to bring their total most-favored-nation tariff rate to either 10% or 12.5%.

A senior administration official described the measure as “the most sweeping international labor rights action the United States has ever taken, that any country has ever taken.” The official argued that forced labor not only raises human rights concerns but also gives non-enforcing nations an “unfair advantage” over the United States, which enforces such bans.

Legal Maneuvering Behind the Levies

The forced labor tariffs use the legal authority of Section 301 of the Trade Act, which allows long-lasting tariffs in response to unfair trade practices. This shift comes after the Supreme Court ruled in February that Trump had illegally used emergency economic powers under a different law to impose previous tariffs. Trump vowed to reinstate his tariffs through other legal routes.

In the interim, Trump ordered 10% tariffs on most global imports under Section 122, which addresses balance-of-payment issues but only lasts for 150 days. Those tariffs are set to expire just as the new forced labor duties go into effect, effectively replacing them. The administration’s Section 301 investigation, led by U.S. Trade Representative Jamieson Greer, concluded this week, paving the way for the new tariffs.

Exemptions and Economic Implications

Several categories of goods are exempt from the new levies, including oil and gas, products not produced in the U.S., goods whose tariff would not help eliminate unfair practices, and items like steel already covered by separate sector-specific tariffs. Many goods compliant with the U.S.-Mexico-Canada Agreement (USMCA) are also exempt.

Economists have warned that tariffs can lead to higher consumer prices and slower economic growth. The administration argues that the tariffs are necessary to revive U.S. manufacturing and counter what it views as unfair trade practices. The measure also serves as an enforcement tool: a few of the targeted countries already have forced-labor import bans, but the U.S. contends they have failed to effectively enforce them.

Looking ahead, the administration is conducting several other Section 301 investigations that could result in additional tariffs. One probe already triggered 25% tariffs on Brazil this week, and a long-running investigation examines whether more than a dozen countries have built up “excess capacity” in manufacturing. Goods like steel, aluminum, and car parts remain under separate Section 232 tariffs.

The new forced labor tariffs represent a significant escalation in Trump’s trade agenda, using labor rights as a rationale to reshape the global trading system—a strategy that is likely to face legal challenges and international pushback.