New Tariffs on Countries Lacking Forced Labor Bans

In Washington, the Trump administration is gradually increasing tariffs on 60 countries that haven’t implemented restrictions on imports related to forced labor. This comes as a worldwide 10% tariff is set to expire on Friday.

On Thursday, government officials revealed that countries introducing bans on forced labor will face a 10% import tax, while those without such bans will see a 12.5% tax. This new levy is set to take effect at 12:01 a.m. on July 24.

Ambassador Jamieson Greer stated, “The United States has maintained a forced labor import ban for nearly a century and enforces it rigorously. It’s high time our trading partners do the same.” He emphasized that this move aims to address both human rights violations and harmful trade practices, ultimately benefiting workers globally.

The 10% tax will be applied to countries including Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom, as listed by the Office of the U.S. Trade Representative.

Countries in the European Union, along with Taiwan, Japan, South Korea, and Switzerland, will enforce either a 10% or 12.5% tax on select products.

This significant development reflects the Trump administration’s commitment to its trade policies while seeking fresh avenues for tariff collection following the Supreme Court’s invalidation of last year’s “Emancipation Day” tariff.

One official noted, “It fosters better enforcement of workers’ rights abroad. This will restore fairness in global markets for American workers and encourage our trade partners to work with us to eradicate forced labor from supply chains.”

For nearly a century, imports connected to forced labor have been banned in the U.S., the official reiterated.

Importantly, oil and gas will not fall under these new tariffs, which will be formalized in the Federal Register after assessments from at least 60 countries.

The tariffs are authorized under Section 301 of the Trade Act of 1974, coinciding with the expiration of President Trump’s 10% blanket tariff under Section 122.

Additionally, officials noted that Section 301 tariffs will not be layered on top of existing tariffs, like those under Section 232.

This trade decision follows President Trump’s earlier announcement regarding 50% tariffs on certain goods coming from Canada.