New U.S. tariffs on 60 economies take effect Friday, in the latest recourse by President Donald Trump’s Administration to impose alternative taxes on imported goods after the Supreme Court struck down most of his aggressive ones earlier this year.
The Office of the U.S. Trade Representative (USTR) announced the new tariffs on Thursday, citing these economies' alleged failure to impose and “effectively” enforce a ban on the import of goods “produced with forced labor.”
“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 U.S. Trade Representative Jamieson Greer in a statement. “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.”
Since the U.S.’s top court ruled in February that Trump lacked the authority to impose sweeping import taxes through emergency powers, he has turned to temporary measures.
The new round of levies takes effect just as a previous 10% global tariff expired Friday. Trump has argued that high tariffs will boost American manufacturing and thus bring jobs, despite studies showing that American importers and consumers take the economic hit for them.
Here’s what to know.
Which countries are covered?
The USTR on March 12 launched an investigation into countries and economies’ forced-labor import policies, which the office said included two rounds of public hearings, public comments, and engagement with trading partners. The results of these investigations were released in June.
The 60 countries and economies covered by these investigations were Algeria, Angola, Argentina, Australia, the Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Canada, Chile, China, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, the European Union, Guatemala, Guyana, Honduras, Hong Kong SAR, India, Indonesia, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Malaysia, Mexico, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Pakistan, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Trinidad and Tobago, Türkiye, United Arab Emirates, the U.K., Uruguay, Venezuela, and Vietnam. The E.U. includes 27 countries.
These partners cover about 99.4% of U.S. imports, according to a USTR factsheet. Some goods, however, will not be covered, such as informational materials, donations, and accompanied baggage, among others.
The tariff rates vary. A 10% tariff applies to goods from 17 economies that “have made commitments to adopt, and effectively enforce, forced labor import prohibitions,” among them Canada, India, Mexico, and the U.K.
For certain non-exempt products from the E.U., Japan, South Korea, Switzerland, and Taiwan, the U.S. will charge an extra tax so that the total tariff—including the normal most-favored nation (MFN) tariff—comes to either 10% or 12.5%.
The other countries face a 12.5% tariff rate.
Some of the affected economies, however, have already targeted goods in their supply chains that are linked to forced labor. Beginning December 2027, the European Union will ban products made with forced labor in its markets. Politico reports that other countries successfully lowered the tariff rate on their goods by enforcing a forced-labor ban after the proposed tariffs were announced last month.
Why is the U.S. imposing this?
An unnamed senior Trump Administration official previewing the new tariffs described the measure to reporters as “the most sweeping international labor rights action the United States has ever taken—that any country has ever taken.”
The official said that the Trump Administration views that countries without enforced bans on forced labor have an “unfair advantage” over the U.S., which has those prohibitions. “It encourages stronger labor rights enforcement abroad, it will restore fairness in the global market for American workers, and it incentivizes our trading partners to join the United States in eliminating forced labor from global supply chains,” the official added.
Section 307 of the U.S. Tariff Act of 1930 prohibits the import of foreign goods produced “wholly or in part” by forced labor, convict labor, or indentured child labor.
The International Labor Organization (ILO) Forced Labor Convention of 1930 defines “forced labor” as “all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.” Latest statistics from the ILO show that about 28 million people were in forced labor worldwide in 2021.
What’s the legal authority behind the latest tariffs?
The Trump Administration used Section 301 of the Trade Act of 1974 for the latest round of tariffs. Under the Act, the U.S. Trade Representative, subject to the President’s direction, can impose levies and other sanctions on countries found to engage in unreasonable or discriminatory trade practices.
During Trump’s first-term Administration, Section 301 played a crucial role in the U.S. trade war with China.
In Trump’s second-term Administration, more Section 301 tariffs are expected as the Office of the USTR continues its ongoing investigations, including one into whether 16 trading partners—including China, the E.U., and Mexico—are overproducing goods and diminishing U.S. advantages in global markets. Earlier this month, Washington imposed a 25% tariff on Brazil through Section 301.
The latest regime comes after Trump imposed tariffs under Section 122 of the same act on Feb. 24. That, however, was merely a stopgap put in place after the Supreme Court ruling, as Section 122 of the Act specifies that such import surcharges can only be prescribed over 150 days unless Congress extends it.
But the new tariffs are still likely to face a legal hurdle. Alan Wolff, a senior fellow at the Peterson Institute for International Economics, wrote in a Thursday note: “These new tariffs would represent another case of presidential overreach. If they were challenged in court, the Supreme Court would likely overturn them.” Wolff, who also argues are likely to be ineffective at addressing global forced labor, says the Constitution vests the authority to determine and implement tariff policy in Congress, not the President.
How have affected economies reacted?
Several countries have called out the latest tariff policy, and the related accusations of underperformance in preventing forced labor. Australia’s Trade Minister Don Farrell said in a statement that the levies were “unjustified” and “should be removed,” arguing that Australia’s policies against forced labor and modern slavery “are among the strongest in the world.”
Brazil, which faces a 12.5% tariff rate, accused the USTR in a statement of “[manipulating] an issue dear to human rights and the global struggle of workers for accusing 59 countries and the European Union of unfair practices.” Brazil’s government added that the new taxes can activate its “Reciprocity Law”—which could allow countermeasures—and that it will bring the dispute to the World Trade Organization.
Canada, which faces a 10% tariff rate, took on a more neutral tone and said the U.S. action “is not unexpected.” Minister for Canada-U.S. Trade Dominic LeBlanc said in a statement that Ottawa “shares the United States’ objective of ensuring goods produced with forced labour do not enter our supply chains” and is willing to continue “engaging constructively” with Washington on the issue.
Speaking to Radio New Zealand, New Zealand’s Trade and Investment Minister Todd McClay said he rejects insinuations of any support for forced labor in the Oceanic country. “We’re not involved in it,” McClay said. “It doesn’t happen through our trade. It doesn’t exist in New Zealand. But [the U.S. is] looking for any way to put a tariff rate back on.”
