Trump imposes forced labour tariffs on 60 nations as temporary 10% levy expires

The Trump administration has replaced an expiring temporary tariff with a new set of duties that hit virtually all U.S. imports, this time anchored in forced labour allegations. The move, announced late Thursday and effective at 12:01 a.m. EDT on Friday, imposes levies of 10% or 12.5% on goods from 60 trading partners, covering 99.4% of American imports. Oil, gas, fertiliser and certain food items are exempt.

A new legal footing

The tariffs are imposed under Section 301 of the Trade Act of 1974, a statute that has survived court challenges and gives the president broad authority to act against unfair trade practices. The administration turned to Section 301 after the Supreme Court ruled in February that earlier reciprocal tariffs, ranging from 10% to 50% and imposed under the International Emergency Economic Powers Act, were illegal. The 6-3 decision forced the White House to refund importers and prompted a temporary 10% global tariff under Section 122 of the same trade act, which expired after 150 days on Friday.

U.S. Trade Representative Jamieson Greer framed the new duties as a human rights measure.

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. 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.

Who pays what

The tariff structure splits countries into three groups. Seventeen nations, including Canada, Mexico, the United Kingdom, India and several Latin American and Asian economies, face a 10% rate because they have committed to adopting and enforcing forced labour import bans. The European Union, Taiwan, Japan, South Korea and Switzerland were assigned rates that, when combined with existing most-favoured-nation tariffs, total 10% or 12.5%. The remaining 38 countries, among them China, Vietnam, Australia and Brazil, are subject to the full 12.5% rate. Goods already in transit are exempt until 12:01 a.m. EDT on 28 July.

Global reaction

Trading partners pushed back quickly. European Union foreign policy chief Kaja Kallas said the bloc would seek clarification from Washington, calling the tariffs a shock and noting that the EU had honoured commitments under a transatlantic trade agreement reached last year. Canada insisted it should not be targeted, describing itself as a leader against forced labour imports. Matthew Holmes, executive vice-president of the Canadian Chamber of Commerce, questioned the timing.

If the intent is truly to address forced labour, the focus should be a coordinated approach through a multilateral mechanism. The timing of this is somewhat suspect as previous rounds of tariffs sunset.

Australia and Brazil described the new duties as unjustified, and Norway's foreign minister said there was no basis for them. Financial markets showed little early reaction, with attention focused on the Middle East conflict.

What comes next

The administration has signalled that more Section 301 tariffs may be on the way. The U.S. Trade Representative's office has already launched an investigation into whether 16 countries, accounting for 70% of U.S. imports, have overproduced goods in a way that disadvantages American companies. That probe has not yet concluded. For now, the new forced labour duties maintain a tariff floor on nearly all imports, keeping alive President Donald Trump's vision of a near-global tariff regime despite the Supreme Court setback.