The US has imposed new tariffs on 60 trading partners that account for the bulk of its imports, claiming they have failed to properly prevent forced labour.
The tariffs, ranging from 10% to 12.5%, target key economic partners – including the UK, China, the EU, Canada, Japan and India. They came into effect on Friday, as a temporary 10% tax imposed on foreign goods earlier this year expired.
The move is the latest escalation in a global trade war reignited by US President Donald Trump upon returning to office last year.
The US Supreme Court ruled earlier this year that several tariffs imposed globally under emergency powers were implemented illegally.
The President has since looked for other ways to pursue his major trade policy.
Last month, the White House proposed 10%-12.5% tariffs on imports from dozens of countries, amid concerns they were not doing enough to combat forced labor.
On Thursday, acting under Trump’s direction, US Trade Representative Jameson Greer said these duties would now go into effect.
“Today’s action will begin to correct both human rights abuses and distorted trade practices to improve the welfare of workers everywhere,” their statement said.
Greer invoked Section 301 of the Trade Act of 1974, which regulates enforcement of US trade practices that burden or restrict US commerce.
Earlier this week, the Trump administration invoked a separate statute, Section 338 of the Tariff Act of 1930, to impose a 50% tariff on Canadian products.
On Thursday, the Office of the US Trade Representative said the latest tariffs were being imposed on the partners “for their failure to effectively enforce and enforce restrictions on the import of goods produced with forced labor.”
It said the new tariffs apply to the top 60 US trading partners covering 99.4% of US imports.
The office said Trump has made the ban on imports produced with forced labor a “crucial” part of reciprocal trade agreements with other countries.
It said so far 10 trading partners have agreed to implement such a ban in these agreements and other countries have implemented it sanctions in response to its investigation in recent weeks.
The office said trading partners that have “committed to adopting and effectively implementing” a ban on forced labor imports will be slapped with a 10% tariff, while those that have not done so will be hit with a higher rate of 12.5%.
Greer said he was “encouraged by trading partners who have moved quickly to adopt forced labor import prohibitions, and see[ed] Proceed to ensure their effective implementation”.
Deborah Elms, a trade policy expert at the Heinrich Foundation, said the new levy shows the Trump administration is “determined” to pursue its tariff strategy.
He told the BBC that it was unlikely that countries affected by tariffs would be able to prove that they had adequate measures in place to stop forced labor imports.
Wendy Cutler, an economic security expert at the Asia Society Policy Institute, said the levy is likely to increase costs for businesses and consumers, although its impact may be minimal due to the number of exempt items.
Most trading partners will be disappointed by the new tariffs, Cutler said, and are likely to focus on ways to “reduce their dependence on the U.S. market” by striking deals with other countries.
