U.S. plans 10%+ tariffs after forced labor probe

U.S. plans – The Trump administration, through the U.S. Trade Representative, is proposing additional 10% or higher tariffs on products from dozens of major trading partners after a forced-labor import probe—citing failures to enforce a forced-labor ban. Canada, Mexico, Ta

For the Trump administration, the next round of trade fights is being framed as a moral one—built around forced labor—and the pricing is already getting attached.

In a report released early Wednesday, the U.S. Trade Representative laid out a proposal to impose tariffs of 10% or more on products from dozens of major trading partners after a probe into whether imports allegedly made with forced labor are being blocked.

Under the plan. Canada. Mexico. Taiwan and the United Kingdom—and some other countries and territories—would face 10% additional tariffs if the USTR concludes they failed to enforce a forced labor import ban. The proposal also calls for a 12.5% additional tariff on China. Japan. India. South Korea. Brazil and Switzerland. along with dozens of other countries.

USTR Ambassador Jamieson Greer said in a statement that “the failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.” He added that “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 says the failure to prevent those imports is “unreasonable and burdens or restricts U.S. commerce.”

That timing matters. The new tariffs would not take effect immediately. They are subject to public comment and review, with public hearings on the proposed duties due to begin on July 7.

The administration’s forced-labor case is being developed under Section 301 of the Trade Act of 1974, a legal pathway that officials say could let the administration move ahead while working around constraints tied to an earlier Supreme Court ruling.

The USTR’s investigation found that 60 countries investigated failed to enforce a prohibition on the importation of goods produced with forced labor. In the report. forced labor is defined 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.” The report also cites an estimate by the UN’s International Labor Organization that as of 2021. 27.6 million people were engaged in forced labor.

To show how broad the risk can be, the USTR pointed to products including rice imported from Myanmar, tobacco from Malawi, beef from Brazil, and cotton and polysilicon from China.

In Washington’s framing, even countries that ban forced labor at home are not necessarily enough. The USTR said that importing goods made with forced labor violates the rules of fair trade even if a country enforces a ban domestically.

China, in particular, is a major battleground. The U.S. has long said imports of goods that include material from China’s far-western Xinjiang are at risk of using forced labor, and Beijing denies allegations of forced labor in the Muslim majority region.

In response to the broader forced-labor allegations. a Chinese government spokesperson denied the claim and called for resolving economic issues through dialogue. Foreign Ministry spokesperson Mao Ning said in Beijing. “There is no such thing as forced labor in China. and we oppose using it as an excuse to engage in political manipulation. ” adding that a trade war “doesn’t serve anyone’s interests.”.

The proposal also arrives after a fresh wave of tariff tension with key U.S. partners. Just two weeks ago. the European Union approved a tariff deal with the United States to cap tariffs on most EU exports at 15% following intense debates among the EU’s 27 nations and threats by European lawmakers to block the agreement.

Trump’s recent return from a visit to China also sits in the background. He met with Chinese leader Xi Jinping. and the two discussed expanding market access for American businesses in China and increasing Chinese investment into U.S. industries. The leaders agreed to set up separate boards of trade and investment, though few details were provided.

Legal and political stakes are also sharpened by the Supreme Court’s role in the administration’s tariff strategy. In February. the Supreme Court ruled that Trump had overstepped his authority by using a different law—the International Emergency Economic Powers Act (IEEPA) of 1977—to impose sweeping tariffs on U.S. trading partners.

The Trump administration has said it would appeal a federal judge’s order making all companies that paid the duties on those earlier tariffs eligible for refunds.

Earlier this week. the administration separately proposed 25% tariffs on imports from Brazil. charging that Brazil. the world’s 10th-biggest economy. engages in trade practices that are “unreasonable” and that “burden or restrict U.S. commerce.” In that nearly 100-page report on forced labor. the USTR also said it found Brazil had lax anti-corruption enforcement and unfair tariffs of its own. among other things.

The forced-labor proposal is likely to land even more uncomfortably because it is not a clean uniform line. The USTR said some key items would be exempt from the additional tariffs or subject to lower tariffs, including certain textiles, tomatoes, bananas, coffee and some metals.

Still, the core message in the report is direct: failure to stop forced-labor-linked imports is treated as a trade offense, and the administration is moving toward turning that determination into tariff rates—with deadlines for public comment and hearings beginning July 7.

U.S. Trade Representative Jamieson Greer forced labor tariffs Section 301 Canada Mexico Taiwan United Kingdom China Japan India South Korea Brazil Switzerland Xinjiang Supreme Court International Emergency Economic Powers Act public comment hearings July 7