US imposes tariffs on dozens of trade partners over ‘forced labour’ imports

The United States is imposing new tariffs on nearly 60 trading partners that account for the vast majority of its imports over allegations they have failed to properly stop forced labor.

The duties, ranging from 10 percent to 12.5 percent, target key economic partners including the UK, EU, Canada, Japan and India. They are coming on Friday A temporary 10% tax on foreign goods imposed earlier this year is set to expire.

The move is the latest escalation in the global trade war that US President Donald Trump reignited when he returned to office last year.

The U.S. Supreme Court ruled earlier this year that many of the tariffs imposed globally under emergency powers were enacted illegally.

So the president has since sought other legal avenues to pursue his flagship trade policy.

The White House first proposed last month to impose a 10-12.5% ​​tax on goods arriving on American shores from dozens of countries over concerns they are not doing enough to combat forced labor.

On Thursday, acting at Trump’s direction, U.S. Trade Representative Jamieson Greer said those mandates would now go into effect.

“Today’s action will begin to correct both human rights abuse and distorted trade practice to improve the well-being of workers everywhere,” the statement said.

Greer invoked Section 301 of the Trade Act of 1974, which governs U.S. trade sanctions for practices that burden or restrict American commerce.

Earlier this week, the Trump administration invoked a different law, Section 338 of the Tariff Act of 1930, to impose a 50% tariff on products coming from Canada.

On Thursday, the Office of the U.S. Trade Representative told the partners that the latest tariffs were imposed “due to their failure to prohibit and effectively enforce imports of goods produced with forced labor.”

It was also stated that the new taxes will be applied to the 60 largest US trading partners, covering 99.4% of US imports.

Trump, in his second term, made bans on imports made with forced labor a “critical” part of bilateral trade agreements with other countries, the office said.

So far, 10 trading partners have agreed to enact such a ban in these agreements, and other countries have also issued bans in response to investigations in recent weeks.

The office added that trading partners “committed to adopting and effectively implementing” bans on the import of forced labor would be subject to a 10 percent tariff, while those who did not would be subject to a higher rate of 12.5 percent.

Greer said in his statement that he was “encouraged by trading partners who have moved quickly to adopt forced labor import bans and look forward to their effective implementation.”

Trump said import taxes would create more manufacturing jobs in the United States and stimulate the American economy.

But economists warn that higher tariffs could make everyday goods like coffee and microwaves more expensive. Since taxes are paid by importing companies, these businesses often pass the extra costs on to shoppers through higher prices.

The president has also used his power to pressure other countries, such as Mexico, on non-trade issues such as labor rules.

The White House insists the tariffs are necessary to protect American workers and ensure fair competition.

But business groups and affected countries are expected to push back.

Many trading partners are already considering potential legal challenges or retaliatory duties.

The administration is also preparing for further steps.

The U.S. trade representative is currently investigating 16 countries that account for the vast majority of U.S. imports over allegations of overcapacity that could pave the way for additional tariffs later this year.