The Trump administration has proposed imposing additional tariffs of 10% or more on products from dozens of major trading partners, following an investigation into imports allegedly made with forced labor. The report, released early Wednesday by the U.S. Trade Representative (USTR), targets countries including Canada, Mexico, Taiwan, and the United Kingdom with a 10% surcharge, while China, Japan, India, South Korea, Brazil, and Switzerland would face a 12.5% tariff.
USTR Statement on Unfair Trade Practices
USTR Ambassador Jamieson Greer stated, "The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field." He added that each trading partner must do more to ensure trade does not entrench forced labor globally. The USTR determined that such failures are "unreasonable and burden or restrict U.S. commerce."
Impact on Key Trading Partners
This latest tariff proposal is likely to unsettle key allies already strained by previous trade actions since President Donald Trump returned to office. Just two weeks ago, the European Union approved a tariff deal with the U.S. capping most EU exports at 15% after intense debates. Trump recently visited China, where he and President Xi Jinping discussed expanding market access and increasing Chinese investment, though few details were provided.
China has denied the forced labor allegations. Foreign Ministry spokesperson Mao Ning said, "There is no such thing as forced labor in China, and we oppose using it as an excuse to engage in political manipulation. A trade war doesn't serve anyone's interests."
Process and Legal Basis
The new tariffs will not take effect immediately. They are subject to public comment and review, with hearings scheduled to begin July 7. The investigation was conducted under Section 301 of the Trade Act of 1974, a strategy that allows the administration to bypass Supreme Court limits on tariff authority. The report found that 60 countries failed to enforce a prohibition on imports made with forced labor, defined as "work or service exacted under menace of penalty and not voluntarily offered."
The USTR cited an International Labor Organization estimate that 27.6 million people were engaged in forced labor as of 2021. Products flagged include rice from Myanmar, tobacco from Malawi, beef from Brazil, and cotton and polysilicon from China. The U.S. has long raised concerns about imports from China's Xinjiang region, which Beijing denies involve forced labor.
Broader Trade Actions
The Supreme Court recently ruled that Trump overstepped by using the International Emergency Economic Powers Act for earlier tariffs. The administration is appealing a federal judge's order for refunds on those duties. Earlier this week, the administration proposed 25% tariffs on Brazil, citing lax anti-corruption enforcement and unfair trade practices. The USTR report noted that even domestic enforcement of forced labor bans does not excuse importing goods made with forced labor, which violates fair trade rules. Some items, such as textiles, tomatoes, bananas, coffee, and certain metals, may be exempt or subject to lower tariffs.
