US proposes tariffs on 60 economies over forced labour, drawing sharp rebukes from EU, UK and Switzerland

The United States Trade Representative's office announced on Tuesday a proposal to impose additional tariffs on imports from 60 economies, citing their failure to prevent the importation of goods produced with forced labour. The proposed duties range from 10 percent for the European Union, the United Kingdom, Canada, Mexico and Argentina, to 12.5 percent for China, Japan, India, South Korea, Brazil and Switzerland, among others. Products such as semiconductors, coffee, beef and fruit would be exempt.

Legal basis and background

The new tariffs are proposed under Section 301 of the Trade Act of 1974, which allows the White House to investigate trading partners' practices. This marks a shift in legal strategy after the US Supreme Court ruled in February that the sweeping tariffs imposed on "Liberation Day" in 2025 were unlawful. A subsequent blanket 10 percent tariff introduced on 24 February was also ruled illegal by a lower trade court in April, though it remains in effect pending appeal. The administration is now seeking a more durable legal foundation for permanent duties without congressional approval.

The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field. We will no longer tolerate this disparity.

European pushback

The European Union and several member states rejected the allegations. Bernd Lange, chair of the European Parliament's trade committee, called the accusation "completely absurd" and said the EU had passed the world's strictest legislation in 2024 banning products made with forced labour from its market. The European Commission stated the claims were unfounded and that it expected the US to respect the trade agreement reached in Scotland in the summer of 2025. That deal would zero out European tariffs on US industrial goods while allowing Washington to levy 15 percent on most EU exports.

For us it is clear: anything beyond the 15 percent agreed in Scotland is unacceptable.

A deputy German government spokesperson, Steffen Meyer, said Berlin had noted the developments but could not yet assess them fully, adding that the focus remained on finalising the EU-US trade deal approved by the European Parliament's trade committee on Tuesday.

Swiss and British reactions

Switzerland's State Secretariat for Economic Affairs (Seco) "categorically" rejected the US findings. Seco director Helene Budliger Artieda noted that forced labour is prohibited under Swiss constitutional, civil and criminal law, and that Switzerland was the first country to ban forced labour in public procurement. The Swiss government argued that US industry is not harmed by Swiss practices. Economiesuisse chief economist Rudolf Minsch called the accusation "totally unfounded" and said the 2.5 percentage point difference versus the EU rate was not decisive for Swiss firms.

There is no evidence that Swiss trade practices disadvantage US companies or that supply chains linked to Switzerland benefit from forced labour.

The UK's independent anti-slavery commissioner, Eleanor Lyons, acknowledged shortcomings in British law, stating that the UK imports around £20 billion of goods annually that may be linked to forced labour and urging the government to adopt her proposed legislation for an import ban.

Next steps

The proposed tariffs are not yet definitive. A consultation period runs until early July, with public hearings scheduled for 7 July. Swiss Economics Minister Guy Parmelin was due to meet US Trade Representative Greer on Wednesday afternoon in Paris on the sidelines of the OECD ministerial conference. Seco indicated that a resolution before 9 July remained likely.

China stated its opposition to any form of unilateral tariffs and denied the existence of forced labour within its borders. The US investigation, announced in March and published as a 98-page report on Tuesday, examined 60 trading partners and concluded that their failures to enforce import prohibitions on forced-labour goods are unreasonable and restrict US commerce.