International

US imposes tariffs on 60 trading partners over forced labour concerns

Washington has placed duties of 10 to 12.5 percent on imports from 60 economies after they failed to enforce bans on goods made with forced labour. The move, framed as a defence of American workers and fair trade, replaces a temporary levy and reflects long-standing US efforts to confront exploitative practices in global supply chains.
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Intelligent summary
  • The US has imposed 10-12.5 percent tariffs on imports from 60 economies for failing to enforce bans on forced labour goods under Section 301.
  • Seventeen economies with existing prohibitions, including the UK, Canada and Mexico, face the lower 10 percent rate while others receive 12.5 percent.
  • The measures replace a temporary levy, include product exemptions to limit disruption, and are defended by the US Trade Representative as correcting both human rights abuses and unfair trade distortions.

I stood once in a dusty warehouse on the outskirts of a Central Asian town where bales of cotton waited for export. Men and women moved silently under the watch of guards. The memory returns now as the United States announces new tariffs on imports from 60 economies. On 23 July the administration imposed duties of 10 to 12.5 percent under Section 301 of the Trade Act of 1974. The reason was straightforward: those economies had not imposed and effectively enforced prohibitions on goods produced with forced labour.

The rates vary. Seventeen economies that already maintain forced labour import prohibitions or related commitments, among them the United Kingdom, Canada, Mexico, India, Bangladesh and Malaysia, face the lower 10 percent tariff. Certain products from the European Union, Taiwan, Japan, Korea and Switzerland attract 10 or 12.5 percent net of the most-favoured-nation rate. All other investigated economies receive the higher rate. Product exemptions cover raw materials, items that might trigger wider economic disruption, goods unavailable in sufficient domestic quantities and other specified categories. The aim is to encourage compliance rather than punish unnecessarily.

This action replaces a temporary 10 percent levy that was due to expire. It follows the Supreme Court ruling earlier this year that struck down broader tariffs. The Office of the United States Trade Representative began 60 investigations on 12 March, issued findings on 2 June and took final action after public hearings, more than 2,100 comments and consultations with over 45 governments.

The United States has maintained a forced labour import ban for nearly a century and enforces it rigorously. That record forms the backbone of the policy. Ambassador Jamieson Greer, US Trade Representative, put it plainly: "President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains. The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it is well past time for our trading partners to do the same. Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere."

The measure covers roughly 99 percent of US imports. It rests on the conviction that American workers should not be forced to compete against goods tainted by coercion. For years Washington has targeted specific sectors, from Xinjiang cotton to solar panels and apparel. This time the approach is economy-wide, pressing trading partners to strengthen their own rules. Some affected allies have voiced criticism or called for further dialogue. Others appear bewildered that the justification applies to them. Yet the underlying point remains: when supply chains rest on forced labour, they distort markets and harm free workers everywhere.

There is discomfort here. Allies find themselves caught in the net. Multilateral habits die hard, and the instinct is often to reach for negotiation rather than unilateral action. Still, the record of gentle persuasion is thin. Forced labour persists because it is profitable. Tariffs of this kind assert a simple principle: national governments retain the right to defend their labour standards and their people. They need not apologise for refusing to subsidise exploitation through open markets.