The Trump administration is implementing new tariffs ranging from 10% to 12.5% on imports from 60 countries, covering 99% of U.S. imports. The action comes as stopgap tariffs imposed by the administration are set to expire Friday.
U.S. Trade Representative Jamieson Greer stated that the tariffs are aimed at addressing what he described as "a human rights abuse and distortive trade practice." He added, "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."
The new tariffs are being imposed under Section 301 of the Trade Act of 1974, a provision that allows the president to enact import taxes and sanctions against countries engaging in "unjustifiable," "unreasonable," or "discriminatory" trade practices. The administration had previously used this section to impose significant tariffs on China.
This action follows a Supreme Court ruling that the International Emergency Economic Powers Act (IEEPA) did not authorize the administration to impose tariffs. That decision required the administration to issue refunds for tariffs previously collected under IEEPA. In response, the administration had previously enacted 10% worldwide tariffs under Section 122 of the Trade Act of 1974, which are limited to 150 days and are due to expire Friday.
Forced Labor Enforcement
Human rights organizations acknowledge that while tariffs can be criticized, they may serve as an effective tool in combating forced labor. The International Labor Organization defines forced labor as "all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself (or herself) voluntarily." According to the ILO, approximately 27.6 million people were in forced labor globally in 2021.
Martina Vandenberg, founder and president of The Human Trafficking Legal Center, has advocated for import bans as a means to combat forced labor, though she noted concerns that such bans could be weakly enforced. She and her organization have urged a phased approach to implementation to allow countries time to develop enforcement mechanisms.
Kenya Davis, a partner at Boies Schiller Flexner, pointed to the Uyghur Forced Labor Prevention Act, passed in 2021, as a significant prior piece of U.S. legislation addressing forced labor, specifically concerning goods from China's Xinjiang region. She suggested that the new tariffs, at a minimum, will draw greater attention to the issue of labor trafficking and forced labor.
Economic Impact and Exemptions
The tariffs are paid by U.S. companies that import foreign products, who may then pass the costs on to consumers through higher prices. This move comes ahead of the November midterm elections, amidst existing public frustration over the cost of living.
Some products, including oil, gas, and fertilizer, have been exempted from the new tariffs. Additionally, products eligible for duty-free status under the US-Mexico-Canada Agreement will not be subject to the new levies.
Reports indicate that the threat of these tariffs has prompted some countries, such as India, to adjust their foreign trade policies to include forced labor import bans. Regulations from the European Union on forced labor, expected to take effect next year, are also seen as a contributing factor.
Isabelle Glimcher, a senior research scientist for global labor at the NYU Stern Center for Human Rights, noted that the tariffs focus on imported goods rather than domestically produced ones. However, she observed that countries appear to be responding to the pressure and taking the issue of forced labor more seriously.