Trump Admin Announces Between 10% and 12.5% Tariffs On 60 Countries Over Forced Labor Imports
The Trump administration announced a new round of tariffs Thursday targeting roughly 60 countries that have not taken sufficient steps to prohibit goods produced through forced labor, replacing a temporary global tariff policy that expires Friday with a new trade framework tied to labor standards.
Senior administration officials said the new duties will take effect at 12:01 a.m. on July 24. Under the plan, countries that have enacted or begun enforcing laws banning imports made with forced labor will face a 10% tariff, while nations that have failed to adopt such measures will be subject to a 12.5% import tax.
“The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same,” said US Trade Representative Jamieson Greer.
“Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere,” Greer added.
According to the Office of the U.S. Trade Representative, the 10% tariff rate will apply to Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
The agency also said certain products imported from European Union member states, Taiwan, Japan, South Korea, and Switzerland will be subject to either the 10% or 12.5% rate, depending on the circumstances. All remaining countries—including China—will generally face the higher 12.5% tariff.
One administration official noted that India qualified for the lower tariff after adopting legislation designed to block products manufactured through forced labor from entering its market.
The latest move underscores the Trump administration’s continued effort to reshape U.S. trade policy while pursuing new legal avenues to impose tariffs after the Supreme Court invalidated last year’s “Liberation Day” tariffs.
“It encourages stronger labor rights enforcement abroad,” an official said of the so-called Section 301 approach. “It will restore fairness in the global market for American workers. And it incentivizes our trading partners to join the United States in eliminating forced labor from global supply chains.”
“For nearly a century, the United States has prohibited imports made in whole or in part with forced labor,” the official added.
Administration officials said oil and natural gas imports will be exempt from the new tariffs, which follow a government investigation examining labor practices in at least 60 countries.
The new duties are being imposed under Section 301 of the Trade Act of 1974, replacing the blanket 10% tariffs issued under Section 122 that are scheduled to expire shortly after midnight.
Officials said the policy will cover approximately 99% of all imports entering the United States, although they do not expect it to significantly alter overall economic conditions because the new rates are largely comparable to the existing tariff levels.
The administration also emphasized that the new Section 301 duties will not be added on top of other tariffs already in place, such as Section 232 tariffs on steel, aluminum, and certain other products that were imposed for national security reasons.
President Trump introduced the temporary Section 122 tariffs earlier this year after the Supreme Court struck down his baseline 10% tariff imposed under the International Emergency Economic Powers Act (IEEPA) on Feb. 20.
Thursday’s announcement comes just days after President Trump imposed a 50% tariff on certain Canadian imports, marking another escalation in his administration’s broader trade agenda.
{Matzav.com}