US hits UK with new 10% tariffs citing forced labour failures

The US has imposed new tariffs on 60 trading partners, including the UK, China and the European Union, in the latest escalation of a trade war reignited by President Donald Trump. The duties, set at 10% to 12.5% on all goods, replace an identical levy expiring on Friday and cover almost all American imports. The White House says the move is based on claims that key economic partners have failed to tackle forced labour. But Caroline Freund, dean of the UC San Diego School of Global Policy and Strategy, told the BBC's Today programme the justification was a pretext. “I think they were looking for a legal reason to put the tariffs in and that they can maintain them,” she said. “It is about the trade deficit and it is about US manufacturing, it is not about forced labour.” The tariffs come after the US Supreme Court ruled earlier this year that many of Trump’s earlier tariffs imposed under emergency powers were illegally enacted. The new levies apply to the top 60 US trade partners, covering 99.4% of US imports, according to the Office of the US Trade Representative. US Trade Representative Jamieson Greer said: “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.” Then the economic impact: Wendy Cutler, an economic security expert at the Asia Society Policy Institute, said the tariffs are likely to raise costs for businesses and consumers, though the effect may be softened by exemptions. Most trading partners, she added, would focus on ways to “reduce their dependence on the US” by making deals elsewhere. For the UK, the timing is particularly painful. William Bain, head of the British Chambers of Commerce, said the UK had lost its comparative advantage against the European Union. The EU holds a 10% all-inclusive deal for tariffs on its goods, while the UK faces 10% universal tariffs on top of any duties imposed on individual products. “So there will be some concerns in the business community this morning,” Bain said.