US imposes new tariffs on 60 trading partners over forced labor concerns

The United States is implementing new tariffs, set at either 10% or 12.5%, on goods imported from 60 trading partners, including the European Union, the United Kingdom, and Canada. The U.S. Trade Representative's office announced that these measures are a response to what Washington deems inadequate efforts by these nations to combat forced labor. The new tariffs are scheduled to take effect early Friday, replacing a previous 10% global tariff that has now expired.

According to U.S. Trade Representative Jamieson Greer, the tariffs are being imposed under Section 301 of the Trade Act of 1974. This legislation allows the U.S. president to levy duties on countries employing "unreasonable or discriminatory trade practices." The administration's justification centers on the alleged failure of trading partners to adequately prohibit or enforce bans on goods produced with forced labor, which the U.S. argues disadvantages American companies adhering to such regulations.

This move follows a U.S. Supreme Court decision in February that invalidated some of former President Donald Trump's earlier tariffs. In response, Trump introduced a temporary 10% global tariff, which was only permitted to last for 150 days and expired concurrently with the announcement of these new measures. The U.S. government initiated an investigation to establish an alternative legal foundation for continued tariffs, leading to the current focus on forced labor practices.

Countries that Washington believes are making at least some effort against forced labor, such as the EU, Canada, India, and the UK, will face the lower 10% tariff. However, nations like China, Japan, and South Korea, along with dozens of others, will be subject to the higher 12.5% rate. Australia and New Zealand have sharply criticized the new tariffs, with Australia's Trade Minister Don Farrell calling them "unjustified" and contrary to their free trade agreement, demanding their abolition. New Zealand's Prime Minister Christopher Luxon expressed similar disappointment, stating that tariffs are not the appropriate solution.