The Trump administration is pressing ahead with a new tariff regime affecting 60 countries and the European Union, replacing temporary import duties that expire on Friday and reviving a cornerstone of President Donald Trump's trade agenda.
The new measures, announced by the U.S. Trade Representative's office, will impose duties of either 10 per cent or 12.5 per cent on imports from countries that Washington says have failed to adequately ban or enforce restrictions on goods produced with forced labour.
The tariffs will cover roughly 99 per cent of U.S. imports and take effect immediately after a temporary 10 per cent global tariff expires.
The move marks Trump's latest attempt to preserve broad-based import duties after a major legal setback earlier this year.
In February, the U.S. Supreme Court struck down tariffs that the president had imposed under emergency powers, ruling that the International Emergency Economic Powers Act (IEEPA) did not authorise such measures. The decision forced the administration to refund duties collected under those tariffs.
After that ruling, Trump turned to Section 122 of the Trade Act of 1974 to impose temporary 10 per cent tariffs across the board. However, those duties can only remain in place for 150 days and are due to expire on Friday.
The administration is now relying on Section 301 of the Trade Act of 1974, a legal authority previously used by Trump to impose tariffs on China during his first term.
U.S. Trade Representative Jamieson Greer said the new duties are intended to encourage stronger action against forced labour in global supply chains.
"The United States has had a forced labour import ban for nearly a century, and rigorously enforces it. It's well past time for our trading partners to do the same," Greer said.
Administration officials argue that countries that do not effectively enforce forced labour bans gain an unfair economic advantage by allowing lower-cost goods into international markets.
Under international labour standards, forced labour refers to work performed under threat, coercion or penalty and without the worker's voluntary consent. According to the International Labour Organization, an estimated 27.6 million people were living in conditions of forced labour worldwide in 2021.
Countries considered to have stronger anti-forced labour frameworks will face a 10 per cent tariff. These include Canada, Mexico, Britain, India, Indonesia, Malaysia, Bangladesh and several Latin American countries.
Other countries, including China and dozens of additional trading partners, will face a 12.5 per cent duty. Imports from the European Union, Japan, South Korea, Switzerland and Taiwan were assigned rates designed to produce an effective tariff burden of either 10 per cent or 12.5 per cent when combined with existing duties.
Some countries secured lower tariffs after strengthening labour enforcement measures during the investigation process. Administration officials cited India as an example, saying it moved from the higher category to the 10 per cent rate after policy changes.
The tariffs do not apply to all imports.
Products exempted from the duties include oil, natural gas, fertilisers and certain food products. Goods already covered by separate national security tariffs, including steel, aluminium, copper and automobiles, are also excluded.
Products qualifying for duty-free treatment under the U.S.-Mexico-Canada Agreement (USMCA) will remain exempt, reflecting the highly integrated nature of North American supply chains.
Additional exemptions were added after public consultations, including certain chemicals, pig iron, animal products and seed products.
The tariffs immediately drew criticism from lawmakers and foreign governments.
Representative Richard Neal, the top Democrat on the House Ways and Means Committee, said forced labour is a serious issue but questioned the administration's approach.
"Forced labour is a real and pervasive problem in our supply chains and demands serious enforcement. It should never be cheapened into a pretext for a tariff policy built on dubious legal theories and personal grievances," Neal said.
Brazil, which faces a 12.5 per cent tariff, described the measure as "arbitrary and unjustified" and said it was considering retaliatory steps and a complaint to the World Trade Organization. Chile also objected, arguing that its labour protections and regulatory framework do not justify inclusion in the higher-tariff category.
While human rights advocates broadly support stronger action against forced labour, some experts have questioned whether tariffs alone can address the problem effectively.
Others note that import restrictions can encourage countries to strengthen enforcement. Several nations have already revised trade policies and labour regulations in response to the U.S. investigation and growing international attention to forced labour issues.
The policy nevertheless carries economic risks. Tariffs are paid by U.S. importers, which often pass those costs on to consumers through higher prices. The new measures arrive at a time when many Americans remain concerned about living costs and inflation, creating a potential political challenge ahead of the November midterm elections.
Despite those concerns, the latest announcement underscores Trump's determination to keep tariffs at the centre of U.S. trade policy, using a different legal pathway after the courts blocked his earlier attempt to impose tariffs on nearly every country in the world.
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Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 23rd of July, covering the latest developments you need to know.
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