The Trump administration has imposed new tariffs of 10% to 12.5% on 60 trading partners, including the UK, in the latest escalation of the global trade war reignited since the president returned to office. The levies, which replace an identical temporary duty expiring on Friday, take effect immediately.
The White House justified the tariffs by claiming key economic partners have failed to tackle forced labour. “Today’s action will begin to correct what is both a human rights abuse and distortive trade practice,” US Trade Representative Jamieson Greer said.
“US imposes new 10% tariff on UK imports citing forced labour concerns, experts say move is about trade deficit.”
But trade experts rejected that rationale. Caroline Freund, dean of the UC San Diego School of Global Policy and Strategy, told the BBC’s Today programme the move is “not about forced labour” and that Trump is “looking for a legal reason to put the tariffs in”. She said the administration’s goals are “about the trade deficit and about US manufacturing”.
The new tariffs follow a February Supreme Court ruling that struck down the previous blanket levies as illegal. The 6-3 decision found that Trump had overstepped his executive authority under a 1977 law designed for national emergencies. The administration has now used forced labour concerns to rebuild its tariff wall without congressional approval.
The UK, along with Canada, the European Union, India and Mexico, will face a 10% duty — reserved for countries that “have made commitments to adopt forced labour import prohibitions”, according to the US trade representative. Those that have “failed to adopt” such bans, including Australia, Brazil, China and Japan, will pay 12.5%.
William Bain, head of the British Chambers of Commerce, said the UK had lost its comparative advantage against the EU as a result. The EU has a 10% all-inclusive deal on its goods, while the UK faces 10% universal tariffs on top of that, he told the BBC.
Trade policy expert Deborah Elms from the Hinrich Foundation said it is unlikely affected countries will be able to prove sufficient measures to prevent forced labour imports. Wendy Cutler of the Asia Society Policy Institute added that most trading partners will be disappointed and are likely to focus on ways to “reduce their dependence on the US” by making deals with other countries. The levies are likely to raise costs for businesses and consumers, though the impact could be softened by exempted goods.