Trump imposes tariffs on 60 economies citing forced labor

The U.S. imposed tariffs from 10% to 12.5% across 60 economies on Friday at President Donald Trump’s direction over forced labor concerns.

After the Supreme Court on February 20 struck down Trump’s ability to impose tariffs under an emergency powers act, Trump said, “Other alternatives will now be used to replace the ones that the court incorrectly rejected.” He also announced he had signed an order enacting global 10% tariffs.

The Office of the U.S. Trade Representative (USTR) announced new tariffs on Thursday, citing the listed economies’ alleged failure to effectively ban imports of goods “produced with forced labor.” In a filing in the Federal Register, the office described its plan to tariff almost 60 countries and the European Union by 10% to 12.5%, effective on Friday.

The USTR also replaced the sweeping 10% tariff baseline that was set to lapse on Friday. The tariffs are being enacted under Section 301 of the Trade Act of 1974.

“Trading partners that have made commitments to adopt, and effectively enforce, forced labor import prohibitions will have a 10% tariff, and trading partners that have failed to adopt a forced labor import prohibition will have a 12.5% tariff rate,” the USTR’s fact sheet on the matter reads.

Economies that will have their imports taxed by 10% include Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago and the United Kingdom. Certain products from the European Union, Taiwan, Japan, Korea and Switzerland will face tariffs of 10% to 12.5%.

The USTR determined that 12.5% is the appropriate rate for all other investigated economies.

“President Trump recognizes that decades of moral suasion have not eradicated forced labor from global supply chains. The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same,” Ambassador Jamieson Greer said in a statement on Thursday. “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. I am encouraged by the trading partners who have moved quickly to adopt forced labor import prohibitions, and look forward to ensuring their effective enforcement.”