US imposes tariffs on 60 trading partners over forced labor concerns

The United States announced on Thursday that it would impose new tariffs on 60 trading partners, accounting for the bulk of its imports citing their failure to stop forced labor.

The duties ranging from 10% to 12.5% affect major economic partners including the UK, China, the European Union, Canada, Japan and India. 

This significant move marks an escalation in the trade war reignited by US President Donald Trump when he returned to office last year. 

The White House proposed 10% to 15% duties on imports from dozens of countries, alleging that these trade partners have failed to adequately address forced labor. On Friday, a temporary 10% tax on foreign goods was also introduced this year.

His statement reads: “Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to enhance worker well-being.

The Office of the US Trade Representative stated that the latest tariffs were levied against trading partners for failing to crack down on the importation of goods produced with forced labour.

The new duties will be implemented to the top US trade partners covering 99.4% of US imports.

According to the office, Trump has made enforcing an import ban on imports produced with forced labor a crucial part of trade agreements with other nations. Several countries have responded to the announcement including Brazil.

Earlier, Brazil has denounced the US decision to impose 25% tariffs on certain Brazilian products which followed the Trump administration’s investigation into a range of what it deemed deceptive trade practices by the South American country.

Trump imposed tariffs of up to 50% on global trading partners on what he designated as “Liberation Day” and sought to address what he saw as discrimination against the US. 

The US Supreme Court struck down those tariffs in February ruling that the president had crossed a clear limit and requiring tens of billions of dollars in refunds.

The White House has explored alternative ways to impose import duties including a 10% tariff as part of a temporary solution that expired on Friday.

The Office of the US Trade Representative said on Thursday that the latest tariffs were being imposed on partners for their failing to effectively enforce prohibitions on importation of goods produced with forced labor.

The new duties apply to the top of US trade partners covering 99.4% of US imports.

Trump had made the enactment of a ban on imports produced with forced labor a significant part of trade agreements with other nations.

Trump has used tariffs to press systems like Mexico on non-trade issues. Furthermore, the administration could be set to levy additional duties as it is currently investigating 16 countries that account for the overwhelming majority of US imports.