US to impose forced labor tariffs on many trading partners, including India
The United States said Thursday it would slap new tariffs on dozens of countries over allegations of lax enforcement of forced labor bans.
The levies range from 10% to 12.5% and impact major economies like China, India and the European Union.
"The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it's well past time for our trading partners to do the same," said US Trade Representative Jamieson Greer.
"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," he added.
The new duties will take effect Friday just as a temporary 10% global tariff expires. ALSO READ: US proposes revised bill with 100% tariffs on India over Russian oil
Which countries and goods will be affected by Trump's new tariffs?
A US official told reporters that:
- Most countries are subject to the higher 12.5% tariff, including China and Japan
- Those with some prohibitions on forced labor, including Canada and the United Kingdom, will face the lower 10% tariff
- Goods already facing sector-specific tariffs, such as steel and aluminum, will be exempt
- Goods entering under the US-Mexico-Canada Agreement will also be exempt
Trump's new wave of global tariffs
The move is the latest bid to restore President Donald Trump's push for sweeping global tariffs after the US Supreme Court struck down his "reciprocal" duties in February.
In response, Trump imposed a temporary 10% tariff under Section 122 of the Trade Act of 1974 — a law meant to quell balance of payments crises — for 150 days that expires on Friday.
The White House had been expected to use a new legal justification for further duties.
Trump is now turning the more durable Section 301 of the Trade Act of 1974, which authorizes the president to impose tariffs and other sanctions on countries found to engage in "unjustifiable," "unreasonable," or "discriminatory" trade practices.
The Trump administration is also separately probing 16 economies over alleged excess industrial capacity, which experts warn could lead to further tariffs being imposed. ALSO READ: 'Do It When Suits Them, Don't When It Doesn't': Jaishankar on US Flip-Flops over Russian Oil Tariffs
How have countries reacted to the latest US tariffs?
Brazil, whose exports to the United States will be subject to a 12.5% tariff under the new measure, called the decision "completely arbitrary" and "unjustified."
The government warned that it would immediately initiate procedures to trigger countermeasures under its "Reciprocity Law" and take the issue before the World Trade Organization's dispute settlement mechanism.
Meanwhile, Australia's Defense Minister Richard Marles told ABC Radio that the new tariffs made "no sense" and that the government was disappointed with the move.
Under the measures, import duties for Australian goods will rise from 10% to 12.5%.
Japan also said it "regrets" the move, with a government spokesperson insisting that its "industry and trade are conducted in accordance with international rules." ALSO READ: Trump lifts tariffs on Scotch whisky in nod to King Charles
