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๐Ÿ‡ธ๐Ÿ‡ฌ Singapore /Economy & Trade

Trump to impose forced labor duties on Friday as temporary 10% US tariffs expire

From The Straits Times · () English

Summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • The Trump administration will impose new tariffs on 60 trading partners, including the EU, over alleged forced labor violations.
  • These new duties, set at 10% and 12.5%, will take effect as a temporary 10% global tariff expires.
  • Officials stated the tariffs aim to restore Trump's trade vision and enforce stronger import bans on goods made with forced labor.

The Trump administration is set to implement new tariffs on approximately 60 trading partners, including the European Union, on Friday. These duties, ranging from 10% to 12.5%, are being imposed due to allegations of lax enforcement of forced labor bans. The move coincides with the expiration of a temporary 10% global tariff.

Senior administration officials explained that this action is part of President Donald Trump's broader effort to re-establish his campaign promise of near-global tariffs. This follows a February Supreme Court ruling that struck down his previous "reciprocal" duties imposed under a national emergencies law. Trump responded to that ruling by enacting a temporary 10% tariff for 150 days, invoking Section 122 of the Trade Act of 1974, which is intended to address balance of payments crises.

so we're really responding to that call.

โ€” A senior Trump administration officialThe official explained that the new tariffs are a response to congressional calls for eradicating forced labor from global supply chains.

The new duties will take effect at the same moment the temporary tariff expires, with exemptions for goods in transit until July 28. A senior official asserted that these forced labor tariffs, invoked under Section 301 of the 1974 law, are not merely a direct replacement for the expiring levies, despite the similar timing, rates, and extensive coverage.

Officials emphasized that the U.S. maintains stronger import bans on goods produced with forced labor and enforces them more rigorously than any other nation, thereby preventing rivals from gaining an unfair trading advantage. Both Democratic and Republican lawmakers have advocated for eradicating forced labor from global supply chains, a call the administration claims to be responding to. The official added that Trump is committed to using all available tools, including tariffs, to achieve his trade policy objectives.

Trump would 'always use the tools at his disposal to achieve his trade policy objectives, and that includes tariffs.'

โ€” A senior Trump administration officialThe official described President Trump's commitment to using tariffs as a tool for trade policy.
DistantNews Editorial

Originally published by The Straits Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.