Tariffs

US Rolls Out New Forced Labor Tariffs on 60 Trading Partners Under Section 301

WASHINGTON — The United States has officially announced a new wave of tariffs targeting 60 trading partners, replacing an expiring global duty with targeted levies aimed at addressing forced labor practices worldwide. The measures, which range between 10 per cent and 12.5 per cent, represent the Trump administration’s latest effort to re-establish its protectionist trade agenda following recent legal setbacks in the US Supreme Court.

Forced Labor Tariffs

Unveiled by US Trade Representative Jamieson Greer, the new tariffs succeed a temporary 10 per cent across-the-board duty that reached its 150-day statutory limit. “The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same,” Greer stated, emphasizing Washington’s stance on global supply chain accountability.

Trump going after countries practiciing forced labor

Trade investigations

Unlike previous broad executive measures that faced legal resistance, the latest trade actions stem from a comprehensive, months-long investigation. Utilizing Section 301 of the Trade Act of 1974 provides the administration with greater statutory flexibility and renders the tariffs considerably more durable against potential court challenges, signaling a sustained shift toward heightened protectionism in the world’s largest economy.

Labour prohibitions

Under the new regulatory structure, trading partners are tiered based on their enforcement of forced labor import prohibitions. Economies that actively maintain and enforce similar bans—including Canada, the European Union, and the United Kingdom—are subject to the lower 10 per cent rate.

Higher Tariffs

Conversely, 54 nations that Washington identified as failing to effectively enforce a prohibition on goods produced with forced labor face a higher 12.5 per cent tariff. Key Asian trade partners, including China, Japan, India, and Singapore, fall into this higher tariff bracket.

Exemptions have been carved out for goods arriving under the United States-Mexico-Canada Agreement (USMCA), as well as products already subject to existing sector-specific duties, such as steel and aluminum.

The forced labor duties arrive amid broader, multi-front trade actions by the US administration. Washington has concurrently launched probes into 16 economies over industrial excess capacity concerns, which could trigger additional duties down the line. Recent weeks have also seen aggressive targeted measures, including a 25 per cent duty on Brazilian goods following an unfair trade practices investigation, alongside newly ordered 50 per cent tariffs on Canadian exports linked to disputes over dairy, automotive, and alcohol markets.

Forced Labour: What trade policy?

Trade policy analysts highlight that the dual approach of establishing baseline duties while maintaining ongoing sector investigations gives Washington significant leverage in international negotiations. By grounding these actions in formal investigations, officials aim to establish a robust legal foundation that allows tariffs to remain intact, while encouraging trade partners to comply with existing bilateral agreements.

As the new duties take effect, global supply chains face a shifting regulatory environment. While the European Union expects Washington to honor commitments spelled out in joint bilateral statements, the deployment of statutory trade tools underscores that international trade pacts remain fragile.

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forced labor – the story

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