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Finance5d ago

US Proposes 10-12.5% Tariffs on 60+ Countries Over Forced Labor Enforcement Failures

Trump administration announces proposed tariffs on dozens of trading partners following investigation into enforcement of forced labor import bans.

Synthesized from 21 sources

The Trump administration announced Wednesday it is proposing additional tariffs of 10% or more on products from dozens of major trading partners following an investigation into alleged failures to enforce forced labor import bans.

Under the proposal, Canada, Mexico, Taiwan, the United Kingdom and other countries would face 10% additional tariffs for allegedly failing to adequately enforce forced labor import restrictions. A higher 12.5% tariff would be imposed on China, Japan, India, South Korea, Brazil, Switzerland, Australia and dozens of other countries.

"The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable," U.S. Trade Representative Jamieson Greer said in a statement. "This creates a dynamic where American workers are forced to compete globally on an unlevel playing field."

The investigation was conducted under Section 301 of the Trade Act of 1974, which enables the administration to circumvent Supreme Court limits on tariff authority. The Court ruled in February that Trump had overstepped his authority using a different law to impose sweeping tariffs on trading partners.

The new tariffs would not take effect immediately and are subject to public comment and review. The report defined forced labor as "work or service exacted from a person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily."

This announcement follows other recent trade actions, including separately proposed 25% tariffs on Brazil over what the administration called "unreasonable" trade practices. The move comes as Trump recently returned from China, where he and President Xi Jinping discussed expanding market access and agreed to establish separate boards of trade and investment.

Sources (21)

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