The Office of the U.S. Trade Representative (USTR) announced the new tariffs on Thursday, citing these economies' alleged failure to impose and “effectively” enforce a ban on the import of goods “produced with forced labor.”
Since the U.S.’s top court ruled in February that Trump lacked the authority to impose sweeping import taxes through emergency powers, he has turned to temporary measures.
Here’s what to know.
The 60 countries and economies covered by these investigations were Algeria, Angola, Argentina, Australia, the Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Canada, Chile, China, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, the European Union, Guatemala, Guyana, Honduras, Hong Kong SAR, India, Indonesia, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Malaysia, Mexico, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Pakistan, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Trinidad and Tobago, Türkiye, United Arab Emirates, the U.K., Uruguay, Venezuela, and Vietnam. The E.U. includes 27 countries.
The tariff rates vary. A 10% tariff applies to goods from 17 economies that “have made commitments to adopt, and effectively enforce, forced labor import prohibitions,” among them Canada, India, Mexico, and the U.K.
The other countries face a 12.5% tariff rate.
Why is the U.S. imposing this?
An unnamed senior Trump Administration official previewing the new tariffs described the measure to reporters as “the most sweeping international labor rights action the United States has ever taken—that any country has ever taken.”
Section 307 of the U.S. Tariff Act of 1930 prohibits the import of foreign goods produced “wholly or in part” by forced labor, convict labor, or indentured child labor.
The Trump Administration used Section 301 of the Trade Act of 1974 for the latest round of tariffs. Under the Act, the U.S. Trade Representative, subject to the President’s direction, can impose levies and other sanctions on countries found to engage in unreasonable or discriminatory trade practices.
In Trump’s second-term Administration, more Section 301 tariffs are expected as the Office of the USTR continues its ongoing investigations, including one into whether 16 trading partners—including China, the E.U., and Mexico—are overproducing goods and diminishing U.S. advantages in global markets. Earlier this month, Washington imposed a 25% tariff on Brazil through Section 301.
But the new tariffs are still likely to face a legal hurdle. Alan Wolff, a senior fellow at the Peterson Institute for International Economics, wrote in a Thursday note: “These new tariffs would represent another case of presidential overreach. If they were challenged in court, the Supreme Court would likely overturn them.” Wolff, who also argues are likely to be ineffective at addressing global forced labor, says the Constitution vests the authority to determine and implement tariff policy in Congress, not the President.
How have affected economies reacted?
Brazil, which faces a 12.5% tariff rate, accused the USTR in a statement of “[manipulating] an issue dear to human rights and the global struggle of workers for accusing 59 countries and the European Union of unfair practices.” Brazil’s government added that the new taxes can activate its “Reciprocity Law”—which could allow countermeasures—and that it will bring the dispute to the World Trade Organization.
Speaking to Radio New Zealand, New Zealand’s Trade and Investment Minister Todd McClay said he rejects insinuations of any support for forced labor in the Oceanic country. “We’re not involved in it,” McClay said. “It doesn’t happen through our trade. It doesn’t exist in New Zealand. But [the U.S. is] looking for any way to put a tariff rate back on.”
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