USTR

Trump rolls out new forced-labor tariffs on 60 countries as trading partners push back

Julian Vance
Julian Vance
NewsHue Author
US Trade Representative Jamieson Greer speaking at a press conference regarding new Section 301 tariffs.

The Trump administration has implemented new tariffs ranging from 10% to 12.5% on 60 trading partners. These duties follow the expiration of a previous temporary tariff program that hit its legal limit this week. Officials state the move addresses persistent issues with forced labor in global supply chains by citing Section 301 of the Trade Act of 1974.

Countries are split into two tiers based on their existing efforts to combat forced labor. Those with verified bans face a 10% rate while others are assessed at 12.5%. The White House maintains this action provides a more durable legal framework than previous attempts at global trade restrictions. U.S. Trade Representative Jamieson Greer argues that voluntary measures failed to remove human rights abuses from trade flows and that these duties provide necessary leverage.

Foreign governments reacted with skepticism toward the justification for the taxes. Australia labeled the tariffs inconsistent with existing trade agreements, noting its own strict regulations against modern slavery. Brazil described the decision as arbitrary, with leadership hinting at a potential pivot toward different international markets. In contrast, Canada received the lower 10% rate, and goods covered under the U.S.-Mexico-Canada Agreement remain exempt from the new charges.

Economists view this shift as a calculated move to extend domestic import bans on specific goods while navigating previous court challenges. Certain products remain protected from the duties, including raw materials critical to domestic manufacturing and items already subject to steel and aluminum levies. The administration continues to review separate investigations into excess global manufacturing capacity that could lead to further policy changes in the coming months.

Frequently Asked Questions

What is the legal basis for the new tariffs?+
The tariffs are imposed under Section 301 of the Trade Act of 1974.
What determines the tariff rate for a country?+
Rates are 10% for countries with forced-labor bans and 12.5% for those without.
Are there any exemptions to the new duties?+
Yes, goods covered by the USMCA, certain raw materials, and items subject to existing steel/aluminum duties are exempt.
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Julian Vance
Julian Vance
Julian Vance is a leading voice in business and finance journalism, breaking down market trends and economic policies.