WASHINGTON – In a significant move aimed at tackling forced labor in global supply chains, the Trump administration has proposed imposing tariffs of 10% or more on products imported from numerous major trading partners. This proposal follows a comprehensive investigation into imports allegedly linked to forced labor practices.
According to a report released by the U.S. Trade Representative (USTR), countries such as Canada, Mexico, Taiwan, and the United Kingdom may face an additional 10% tariff for not adequately enforcing a ban on imports made with forced labor. In contrast, a 12.5% additional tariff is proposed for nations including China, Japan, India, South Korea, Brazil, and Switzerland, among others.
USTR Ambassador Jamieson Greer emphasized that the failure of key trading partners to address the importation of goods produced under forced labor conditions is “unacceptable,” creating unfair competition for American workers. He stated, “Each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally.”
The USTR’s report claims that the lack of action by these countries is “unreasonable and burdens or restricts U.S. commerce.” This latest proposal is likely to heighten tensions with trading partners already affected by various tariffs since President Trump took office early last year.
Just recently, the European Union finalized a tariff agreement with the U.S. that caps tariffs on most EU exports at 15%, following intense negotiations among its member nations. This backdrop of tariff discussions sets the stage for potential friction as the U.S. moves forward with its proposals.
The new tariffs will undergo a public comment and review process before taking effect, with hearings scheduled to begin on July 7. This investigation into the alleged failure to prevent imports of forced labor goods was conducted under Section 301 of the Trade Act of 1974, a strategy that enables the administration to bypass certain limitations on tariff imposition set by the Supreme Court.
The USTR’s findings indicate that out of 60 countries investigated, many have failed to enforce prohibitions against imported goods produced with forced labor. The report defines 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.” An alarming statistic from the UN’s International Labor Organization indicates that as of 2021, approximately 27.6 million individuals were subjected to forced labor globally.
Specific products cited in the report that could be implicated in forced labor practices include rice from Myanmar, tobacco from Malawi, beef from Brazil, and various goods from China’s Xinjiang region. The U.S. has long highlighted concerns regarding imports from Xinjiang, where Beijing denies allegations of forced labor.
Following a Supreme Court ruling in February, which determined that President Trump overstepped his authority by using the International Emergency Economic Powers Act to impose tariffs, the administration is appealing a federal judge’s order that would allow companies that paid the previous tariffs to seek refunds.
Additionally, the administration recently proposed imposing 25% tariffs on imports from Brazil, citing trade practices deemed “unreasonable” and detrimental to U.S. commerce. The USTR’s report also pointed out Brazil’s lax anti-corruption enforcement and unjust tariffs.
The USTR’s nearly 100-page report underscores the importance of fair trade practices, stating that even if a country enforces a domestic ban on forced labor, importing goods produced under such conditions remains a violation of fair trade principles. Notably, certain items may be exempt from the new tariffs or subject to reduced rates, including specific textiles, tomatoes, bananas, coffee, and some metals.
___
AP Business Writer Elaine Kurtenbach contributed to this report.
