EU threatens Mexico with 10% tariff; investigates alleged forced labor

The United States Trade Representative (USTR) has proposed imposing tariffs of 10% or more on goods from several countries, including Mexico, Canada, Taiwan, and the United Kingdom. This action follows an investigation into allegations that these nations have failed to adequately prohibit and prevent the import of products made with forced labor.

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The information available indicates that Mexico is failing to effectively enforce its import ban on goods produced with forced labor.

An additional 12.5% tariff is being considered for China, Japan, India, South Korea, Brazil, and Switzerland. The USTR's investigation was conducted under Section 301 of the Trade Act of 1974, a strategy that could allow the U.S. president to implement tariffs that might otherwise face legal challenges.

While Mexico has a legal ban on importing goods produced by forced labor, dating back to 2023, the USTR report indicates that this prohibition is not being effectively enforced. The report cites concerns about the transparency of procedures used by Mexico's National Customs Agency (ANAM) to address related complaints.

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It is unacceptable that our most important trading partners are not addressing the problem of importing products made with forced labor. This creates a situation where U.S. workers are forced to compete globally on unequal terms.

"It is unacceptable that our most important trading partners are not addressing the problem of importing products made with forced labor," stated U.S. Trade Representative Jamieson Greer. He emphasized that U.S. workers should not be forced to compete globally under unequal conditions and warned that such disparities will no longer be tolerated. While acknowledging that some partners have taken initial steps, Greer stressed that "each of our trading partners must do more to ensure that trade does not perversely encourage or entrench forced labor globally."

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We will not tolerate this disparity any longer. Some trading partners have taken the first steps to prevent the import of products made with forced labor, through the USMCA and commitments made in reciprocal trade agreements, among other things. However, each of our trading partners must do more to ensure that trade does not perversely encourage or entrench forced labor globally.