The United States is imposing new tariffs on around 60 trading partners – including the UK – over claims they failed to properly stop forced labour, in the latest escalation of the global trade war reignited by President Donald Trump when he returned to office last year.
The duties, ranging from 10% to 12.5%, target key economic partners such as the European Union, Canada, Japan and India, and cover 99.4% of US imports, according to the Office of the US Trade Representative. They come into force on Friday, as a temporary 10% tax on foreign goods introduced earlier this year expires.
“US imposes 10-12.5% tariffs on UK and 59 other nations over forced labour import bans.”
The move follows a US Supreme Court ruling earlier this year that many of the tariffs imposed globally under emergency powers were illegally enacted. Since then, the president has sought other legal avenues to pursue his flagship trade policy.
On Thursday, US Trade Representative Jamieson Greer, acting under Trump's direction, invoked Section 301 of the Trade Act of 1974 to impose the measures. Greer said the tariffs would address “what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere.”
The Office of the US Trade Representative said the 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.” It added that Trump had made adoption of such a ban a “critical” part of reciprocal trade agreements.
So far, 10 trading partners have agreed to enact forced labour import bans, subjecting them to the lower 10% tariff rate. Those that have not will face the higher 12.5% rate. Greer said he was “encouraged by the trading partners who have moved quickly to adopt forced labour import prohibitions.”
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. Trump has said import taxes will create more US manufacturing jobs and boost the American economy, but economists warn that higher tariffs can make everyday goods more expensive for consumers.