US Proposes New Tariffs Over Forced Labour Trade Concerns

The US has proposed new tariffs of 10% or more on imports from 60 trading partners over alleged failures to enforce bans on goods linked to forced labour. A higher 12.5% tariff is proposed for countries including China, India, Japan, and Brazil. The measure is still under review and not yet in effect, but it could significantly strain global trade relations if approved.

US President Donald Trump’s administration has proposed a new wave of tariffs of 10% or more on a broad range of trading partners following a trade investigation focused on imports linked to forced labour practices.
In a report released on Wednesday, the US Trade Representative (USTR) said it had identified 60 economies that it claims have failed to adequately prohibit or enforce bans on goods produced using forced labour. The agency argued that this gap in enforcement has created distortions in global trade, allowing products linked to exploitative labour conditions to enter international markets.
USTR Ambassador Jamieson Greer stated in the report that the current global system places American workers at a disadvantage, saying it forces them to compete in what he described as an “unlevel playing field.” He added that the United States would no longer tolerate what it sees as unfair trade practices connected to forced labour supply chains.
The proposal remains in the consultation phase and is not yet active. It has been opened for public comment and review, meaning businesses, governments, and other stakeholders can submit feedback before any final decision is taken. However, if implemented, the plan would represent a major escalation in US trade policy tied to labour rights enforcement.
Under the proposal, an additional 10% tariff would be imposed on imports from several major trading partners, including Canada, Mexico, Taiwan, Pakistan, the United Kingdom, and member states of the European Union. According to the USTR, these countries either have partial enforcement systems or have made commitments regarding forced labour but still have gaps in implementation.
A steeper tariff increase of 12.5% is proposed for 45 other economies, among them China, India, Japan, South Korea, Brazil, and Switzerland. The USTR said these countries have not effectively enforced prohibitions on imports linked to forced labour, which Washington views as a serious compliance failure in global trade governance.
The administration said the aim of the proposed tariffs is to ensure that international trade does not indirectly support or benefit from forced labour practices. Officials also framed the measure as part of a broader effort to protect domestic industries from what they consider unfair competition created by unethical supply chains.
The USTR noted that it launched 60 separate investigations in March as part of its wider enforcement review. These investigations examined supply chains, import records, and compliance mechanisms across multiple regions to determine whether forced labour links could be identified in imported goods.
Hearings on the proposed tariff measures are scheduled for July 7, where governments, trade groups, and affected industries are expected to present arguments for and against the policy. The outcome of these hearings will play a key role in determining whether the proposal is revised, delayed, or implemented.
The announcement is expected to heighten tensions between the United States and several of its major trading partners, many of whom have been engaged in ongoing negotiations with Washington over existing tariff structures and trade agreements.
Only recently, the European Union approved a trade arrangement with the United States that capped most tariffs on EU exports at 15%, following lengthy negotiations that required compromise among member states with differing economic interests.
At the same time, US officials are continuing discussions with India on a bilateral trade agreement, after earlier tariff measures strained relations between the two countries. Those tensions were partly linked to disputes over energy imports, including India’s purchases of Russian oil, which Washington has criticized.
Similarly, relations with China remain sensitive as both countries continue to balance cooperation and competition in trade, technology, and geopolitical influence. The proposed tariff increases could add further strain to these already complex dynamics.
If adopted, the new measures could reshape parts of the global trading system by linking tariff levels more directly to labour rights compliance. However, critics and trading partners are expected to closely scrutinize both the legal basis and economic impact of the proposal before it moves beyond the consultation stage.