U.S. says it plans extra tariffs of 10% or more for most trading partners after forced labor probe

Key Points:

• The U.S. proposed tariffs of 10% on imports from 16 economies, including Canada, Mexico, the EU, Taiwan, and the UK, and 12.5% on 44 others such as China, Japan, and India, citing failure to enforce bans on forced labor.
• These tariffs aim to replace revenue lost after the Supreme Court struck down previous global tariffs imposed under the Trump administration, with exemptions for certain products and countries to limit consumer impact ahead of midterm elections.
• The proposal faced immediate criticism, notably from China denying forced labor allegations and the EU disputing claims of insufficient enforcement, viewing the tariffs as a pretext for reinstating previously invalidated duties.
• The administration is leveraging Section 301 of the Trade Act of 1974 to justify the tariffs, targeting unfair trade practices, with plans to implement the new tariffs by the expiration of temporary levies in late July.
• The report highlights forced labor as work exacted under threat without voluntary consent, citing UN data estimating 27.6 million people in forced labor globally, and identifies various products at risk, including rice, tobacco, beef, cotton, and polysilicon.