US Slaps Tariffs on 60 Nations Over Forced Labour Imports

The United States announced new tariffs on Thursday against roughly 60 trading partners, representing nearly all of its imports, over claims that those countries have not done enough to combat forced labour. The duties, ranging from 10% to 12.5%, will take effect on Friday, the same day a temporary 10% levy on foreign goods expires. The action targets key economies including the UK, China, the European Union, Canada, Japan, and India.

New Legal Authority for Tariffs

U.S. Trade Representative Jamieson Greer invoked Section 301 of the Trade Act of 1974 to impose the tariffs, citing what he called a human rights abuse and a distortive trade practice. The move comes after the Supreme Court struck down earlier blanket tariffs imposed under emergency powers, ruling that President Donald Trump had exceeded his authority. Since then, the administration has sought alternative legal avenues to advance its trade agenda.

Greer stated that the tariffs would begin to correct a practice that harms American workers and violates human rights. The Office of the U.S. Trade Representative said the duties apply to the top 60 U.S. trade partners, covering 99.4% of U.S. imports.

Forced Labour as a Trade Issue

The administration argues that forced labour not only violates human rights but also distorts global trade by giving countries an unfair advantage. Under the new policy, trading partners that have agreed to enact and enforce bans on imports made with forced labour will face a 10% tariff. Those that have not made such commitments will face a higher 12.5% rate. According to the USTR, 10 partners have already agreed to adopt such bans in reciprocal trade agreements, while others have enacted bans in response to U.S. investigations in recent weeks.

Greer expressed encouragement at the swift actions taken by some partners and said he looked forward to ensuring effective enforcement.

Escalation in Global Trade War

The new tariffs represent the latest escalation in the trade war reignited by President Trump after his return to office last year. Earlier this year, Trump imposed sweeping tariffs on what he called "Liberation Day," targeting global partners with levies of up to 50%. Those tariffs were struck down by the Supreme Court in February, leading to billions of dollars in refunds to companies that had paid them. The White House then implemented a temporary 10% tax, which expires Friday, and has since pursued other measures.

Earlier this week, the administration invoked Section 338 of the Tariff Act of 1930 to impose 50% tariffs on Canadian products. The U.S. has also been embroiled in a tit-for-tat tariff war with China, currently on hold, and has imposed levies on Brazil and other nations.

Economic Implications Ahead

Economists have warned that higher tariffs can raise costs for everyday goods, from coffee to microwaves, as importing companies pass on the expense to consumers. While Trump has long argued that tariffs protect American jobs and boost manufacturing, critics say they risk fueling inflation and disrupting supply chains. The new forced labour tariffs add another layer of complexity to global trade relations, potentially prompting retaliatory measures from affected partners.

Looking ahead, the administration is expected to continue using trade enforcement tools to pursue its policy goals. The forced labour issue is likely to remain a key point of negotiation in trade talks, with the U.S. pressing other nations to align with its standards. The effectiveness of these tariffs in curbing forced labour or reshaping global supply chains remains to be seen.