Trump threatens tariffs on 60 countries as ‘forced labour’ concerns intensify

Donald Trump has threatened to impose tariffs of between 10% and 12.5% on 60 countries including major allies like the UK, EU and Australia in the wake of alleged labor failures, marking a significant attempt to resurrect his hallmark trade strategy.

While the administration is using Section 301 of the Trade Act of 1974 to penalize countries over alleged failures to stop the import of goods produced by forced labor.

Jamieson Greer, serving as US trade representative, said: “The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field. We will no longer tolerate this disparity.”

The US claims this creates a global market disparity for American workers. According to a 98-page investigation report, the planned breakdown is as follows

• 10% tariff: EU, UK, Canada, Mexico and Taiwan
• 12.5% tariffs: China, Japan, India, South Korea, Brazil and Switzerland

At present, the forced labor justification is viewed by experts as a legal workaround. It follows a February Supreme Court ruling that struck down Trump’s “Liberation Day” tariffs as illegal, and a subsequent US Trade Court ruling that found his 10% across-the-board tariffs unlawful.

Although a few countries like Canada and Mexico have forced labor prohibitions as the White House judged Canada as failing to apply a rule. 

Conversely, the EU's forced labor ban doesn't take effect until December 2027, leaving it vulnerable to these immediate penalties.

The European Commission immediately hit back, stating that while it shares concerns over forced labor, these tariffs are “unjustified”. It further argues that "stealth tariffs” breach the spirit of a deal that got struck last July, which established a 15% tariff agreement on most goods.

The recent announcement disrupts efforts by international leaders including UK Prime Minister Keir Starmer-who have been working to gain trust with the administration and stabilize trading costs. 

The UK government is efficiently working to tackle the issue of forced labour legislation like the Modern Slavery Act. 

A spokesperson said of the current situation: “We continue to engage regularly with the US administration as part of our negotiations and have made clear the actions we’re taking.”

“The preferential access that UK businesses benefit from under our existing agreement remains in place and there is no change to the UK’s tariff rate.” further added.