The US is imposing new tariffs on around 60 trading partners accounting for the vast majority of its imports over claims they failed to properly stop forced labour. The duties, ranging from 10% to 12.5%, target key economic partners – including the UK, China, EU, Canada, Japan and India. They come in on Friday, as a temporary 10% tax on foreign goods introduced earlier this year expires.
The move is the latest escalation in the global trade war reignited by US President Donald Trump when he returned to office last year.
The US Supreme Court ruled earlier this year that many of the tariffs imposed globally under emergency powers were illegally enacted.
So the president has since sought other legal avenues to pursue his flagship trade policy.
It was last month that the White House first proposed a series of 10-12.5% duties on goodsarriving to American shores from dozens of countries over concerns they were not doing enough to tackle forced labour.
On Thursday, US Trade Representative Jamieson Greer, acting under Trump’s direction, said those duties would now take effect.
“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,” his statement said.
Greer invoked Section 301 of the Trade Act of 1974, which governs US trade enforcement of practices that burden or restrict American commerce.
Earlier this week the Trump administration invoked a different statute, Section 338 of the Tariff Act of 1930, to impose 50% tariffs on products from Canada.
On Thursday, the Office of the US Trade Representative said the latest tariffs were being imposed on partners “for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour”.
The new duties apply to the top 60 US trade partners covering 99.4% of US imports, it added.
The office said Trump in his second term had made adoption of a ban on imports made with forced labour a “critical” part of reciprocal trade agreements with other nations.
It said so far 10 trading partners had agreed to enact such a ban in these agreements, and other countries had enacted bans in response to its investigations in recent weeks.
Trading partners that have “made commitments to adopt, and effectively enforce” bans on forced labour imports will be subject to a 10% tariff, while those that have not will have the higher 12.5% rate, the office added.
Greer said in his statement he was “encouraged by the trading partners who have moved quickly to adopt forced labour import prohibitions, and look forward to ensuring their effective enforcement”.
Trump’s signature policy
Trump has long argued that tariffs protect American workers, create more manufacturing jobs and boost the US economy.
After returning to the White House last year, Trump imposed tariffs of up to 50% on global trading partners on what he called “Liberation Day”.
He said the measures were aimed to address what he saw as decades of unfair treatment of the US by countries around the world.
In February, the US Supreme Court struck down those tariffs and said that the president had exceeded his authority as he had not gained approval from Congress.
Tens of billions of dollars have since been refunded to companies that paid the levies.
But the White House has since looked at alternative ways to impose import duties, including a sweeping 10% levy as part of a temporary solution that is set to expire on Friday.
Washington has also imposed a slew of other tariffs on countries like Brazil and Canada.
The US and China have also been embroiled in a tit-for-tat tariffs war, which is currently on hold.
Economists have warned that higher tariffs can make everyday goods, like coffee and microwaves, more expensive. Because taxes are paid by importing companies, those businesses often pass the extra costs on to shoppers through higher prices.
The president has also used the duties to press other countries, such as Mexico, on non-trade issues, like labour rules.
Business groups and affected countries are expected to push back on the latest tariffs.
Many trading partners are already weighing potential legal challenges or retaliatory duties in response.
The administration is also preparing for further action.
The US trade representative is currently investigating 16 countries – accounting for the vast majority of US imports – over claims of manufacturing overcapacity, which could pave the way for additional duties later this year.
By BBC News
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