The Trump administration announced new tariffs on approximately 60 countries that have not banned imports made with forced labor. The duties, set to take effect at 12:01 a.m. on July 24, will be 10% for countries that have begun implementing a forced labor prohibition and 12.5% for those that have not.
"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. He stated that the action aims to address a human rights abuse and a distortive trade practice, with the goal of improving worker welfare globally.
Countries listed to receive the 10% tariff include Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom. Nations within the European Union, along with Taiwan, Japan, Korea, and Switzerland, will face either 10% or 12.5% rates on specific products.
These new tariffs are being implemented under Section 301 of the Trade Act of 1974. An administration official described the move as a way to encourage stronger labor rights enforcement abroad, restore fairness in the global market for American workers, and incentivize trading partners to eliminate forced labor from supply chains.
This initiative signifies an escalation of the administration's trade policies. It follows the Supreme Court's decision on February 20 to strike down previous 10% tariffs enacted under the International Emergency Economic Powers Act (IEEPA). The newly announced duties are distinct from ongoing tariffs and will not be stacked on top of existing measures, such as those under Section 232.
Oil and gas products will be exempt from these new tariffs. The announcement comes shortly after the administration imposed a 50% tariff on certain goods from Canada earlier in the week.