US Proposes New Tariffs on Imports from 60 Economies, Citing Forced Labor Concerns

The administration of US President Donald Trump on June 10 proposed imposing additional tariffs of up to 12.5% on imports from 60 economies, concluding these nations have not prevented goods made with forced labor from entering the supply chain. The proposal, issued by the Office of the United States Trade Representative (USTR), stems from a Section 301 investigation into unfair trade practices.

The move aims to reinstate emergency tariffs Trump had previously imposed, which were struck down by the US Supreme Court in February. USTR asserts that forced labor products remain deeply embedded in global supply chains despite legal prohibitions.

Under the proposal, a 10% supplemental tariff would apply to imports from Canada, Ecuador, the European Union (EU), Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan, and the United Kingdom. The remaining 45 economies—including China, India, Nigeria, Japan, South Korea, Vietnam, Australia, and New Zealand—would face a 12.5% rate.

US Trade Representative Jamieson Greer stated: “Our most important trading partners’ failure to address imports of goods produced with forced labor is unacceptable. This creates a situation where American workers must compete globally on an uneven playing field.”

USTR will accept public comments on the proposal until July 6, with a public hearing scheduled for July 7. The announcement comes ahead of the July 24 deadline, when the temporary 10% tariff Trump imposed in February expires. The Supreme Court had previously rejected tariffs under the International Emergency Economic Powers Act, and a specialized trade court ruled the global 10% levy unlawful in May.

The European Commission (EC) called the tariffs unjustified, reaffirming its commitment to a trade agreement signed with Washington last year. Bernd Lange, chair of the European Parliament’s trade committee, described the US investigation as “completely absurd,” noting the EU passed a law banning imports of forced labor products in 2024. He criticized: “There is a growing sense that tariff measures are sought first, and only then are appropriate legal justifications found.”

The United Kingdom said it is negotiating regularly with the US and taking action against forced labor. Mexico insisted goods compliant with the US-Mexico-Canada Agreement (USMCA) would be exempt from the new tariffs. Taiwan expressed “hope and confidence” the final outcome would reflect agreements already reached.

China, facing the 12.5% rate, voiced opposition to all forms of unilateral tariffs and denied any forced labor exists in the country. India, subject to the same levy, said it is working with Washington and noted the proposal is not final.

Andrew Wilson, Deputy Secretary-General of the International Chamber of Commerce (ICC), warned: “There will be deep concern in the international business community that US anti-forced labor law could become a global template. Anyone can file a complaint, leading to cargo seizures and companies having to prove no forced labor exists in their supply chain.”

USTR also announced tariff exemptions for products including energy, rare earths, select other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals, and aircraft parts. A textile mechanism was proposed, allowing imports of certain apparel and textile goods at reduced rates, though no specifics have been provided.

According to Wilson, the exemption list spanning over 76 pages underscores sensitivity about cost-of-living impacts on food and other items with forced labor risks. He questioned: “It would make no sense if the goal of this is to strengthen controls on modern slavery.”