U.S. Imposes New Tariffs on 60 Countries Over Forced Labor Enforcement

The United States will impose tariffs of 10% to 12.5% on imports from 60 countries, citing insufficient enforcement of bans on goods produced by forced labor. The new tariffs take effect as temporary 10% worldwide tariffs expire at 12:01 a.m. Friday. Some products, including oil, gas, and fertilizer, are exempt. Goods qualifying for duty-free status under the US-Mexico-Canada Agreement (USMCA) are also spared.

Legal Basis and Background

The tariffs are authorized under Section 301 of the Trade Act of 1974, which permits the U.S. president to impose sanctions on countries engaged in trade practices deemed unjustifiable, unreasonable, or discriminatory.

The U.S. Trade Representative's office has also launched a probe into whether 16 countries have engaged in overproduction, a step that could lead to additional Section 301 tariffs.

The temporary 10% worldwide tariffs were imposed after the Supreme Court struck down an earlier set of tariffs implemented under the International Emergency Economic Powers Act. The new Section 301 tariffs are considered more durable and have previously survived court challenges.

Affected Countries and Tariff Structure

The tariffs target countries that the U.S. determined have failed to impose or effectively enforce bans on importing goods made with forced labor. A senior administration official stated that some countries tightened their forced labor enforcement and qualified for lower tariffs. For example, India's tariff was reduced from 12.5% to 10%.

Tariffs are paid by U.S. importers, who may pass the costs on to consumers.

Responses

U.S. Officials

U.S. Trade Representative Jamieson Greer stated, "The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same."

U.S. Rep. Richard Neal (D-Mass.) criticized the tariffs, saying, "Today’s forced labor justification is too convenient to be taken seriously."

International Reactions

• Brazil called the move "arbitrary and unjustified" and stated it plans to consider retaliatory tariffs and a complaint with the World Trade Organization (WTO).
• Chile's Undersecretary for International Economic Relations Paula Estévez said the country has "solid labor institutions" and considers the measure inconsistent with its standards.
• Dominic LeBlanc, Canada-U.S. Trade Minister, called the move "not unexpected" and said Canada shares the objective of preventing forced labor goods from entering supply chains.

External Perspectives

Human rights organizations expressed cautious support, noting potential effectiveness if enforced gradually.

• Martina Vandenberg, president of The Human Trafficking Legal Center, said import bans can be an effective tool against forced labor but urged a phased approach.
• Kenya Davis, partner at Boies Schiller Flexner, said the Uyghur Forced Labor Prevention Act drew attention to forced labor but cautioned that without a comprehensive approach, enthusiasm should be cautious.
• Isabelle Glimcher of NYU Stern Center for Human Rights noted that the tariff threat has spurred several countries, such as India, to amend their trade policies to include a forced labor import ban.

The International Labour Organization reported that 27.6 million people were in forced labor globally in 2021.