US Imposes New Tariffs Citing Forced Labour Concerns

The New Tariffs

The administration of US President Donald Trump has proposed new tariffs of up to 12.5 percent on imports from 60 economies after determining they had failed to curb trade in goods made with forced labour, an assertion that was rejected by US trading partners.

Forced Labour Concerns

Despite laws banning them, the products of forced labour are deeply embedded in supply chains across the world. European lawmakers bristle at the accusation that the region is less effective than the US at curbing the trade in such goods, with one describing the US findings as 'utterly absurd'.

Economic Impact

The USTR proposed 10 percent additional duties on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Britain. The USTR said all had plans or partial schemes in place.

Global Reactions

The announcement comes ahead of the July 24 expiration of a 10 percent temporary tariff imposed by the Trump administration on February 20, the day the Supreme Court struck down Trump's tariffs under the International Emergency Economic Powers Act. It also shows how determined the Trump administration is about building a wall of tariffs around the US economy, the world's largest, despite repeated setbacks in court.

Exemptions and Next Steps

The USTR said it would exempt from tariffs products including energy, rare earths and some other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts. It also said it was proposing a textile mechanism that would allow for a certain volume of apparel and textile imports to enter the US at a reduced tariff rate, without giving details.