WASHINGTON — The Trump administration is ratcheting up tariffs on 60 countries that have failed to ban imports made from forced labor, as 10% global duties are set to expire Friday.
Senior administration officials said Thursday that countries that have begun implementing a forced labor prohibition or law on their books will be hit with 10% duties, while those that haven’t will receive an import tax of 12.5% — with the levies taking effect at 12:01 a.m. on July 24.
“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.
The 10% 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 UK, according to the Office of the US Trade Representative.
The European Union nations, Taiwan, Japan, Korea and Switzerland will be hit with either 10% or 12.5% rates for certain products, per the office, while all other nations including China will get the 12.5% rate.
One official noted that India had been slapped with the lower 10% rate after passing a law to prevent products made with forced labor.
The sweeping new tariffs signify that the Trump administration is doubling down on its trade agenda and finding new ways to collect duties to withstand legal scrutiny after the Supreme Court struck down last year’s “Liberation Day” levies.
“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.
Oil and gas won’t be subject to the new tariffs, which are being introduced into the Federal Register following an investigation of at least 60 countries.
The duties are being brought under Section 301 of the Trade Act of 1974, just as President Trump’s blanket 10% tariffs under Section 122 are set to expire after midnight Thursday.
The import taxes cover a whopping 99% of US imports but aren’t expected to have a great economic effect since they are roughly at the previous rate.
The official said there would be no “stacking” of the Section 301 duties on top of ongoing tariffs like Section 232, which were levied on national security grounds, for steel, aluminum and other goods.
Trump had announced the Section 122 tariffs shortly after the Supreme Court struck down his baseline 10% tariff rate under the International Emergency Economic Powers Act (IEEPA) on Feb. 20.
The trade announcement follows the president’s decision to tariff Canada earlier this week at a rate of 50% on certain goods.
