Trump threatens tariffs on 60 trading partners including UK and Canada over ‘forced labour’

US Trade Representative Proposes Tariffs on Goods from 60 Trading Partners Citing Forced Labor Import Rules

The US trade representative has proposed tariffs of 10% to 12.5% on imports from 60 trading partners, including the United Kingdom, the European Union, Canada, Australia, Japan, Norway, Taiwan and China, based on findings that those partners have not adequately restricted goods produced with forced labor. The measures follow investigations conducted under section 301 of the Trade Act of 1974.

The proposal comes after the US Supreme Court ruled in February that earlier “liberation day” tariffs were unlawful and after a subsequent trade court decision found a 10% across-the-board tariff also exceeded presidential authority, though that tariff remains in effect during appeal. The new duties are intended to address what the administration describes as an uneven competitive position for US producers resulting from differing import restrictions on forced-labor goods.

US Trade Representative Jamieson Greer stated that the failure of major trading partners to prevent imports of goods made with forced labor places American workers at a disadvantage and that the disparity would no longer be accepted. The 98-page report issued with the proposal concluded that only Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan maintain forced-labor import prohibitions. It further determined that Canada has not enforced its prohibition effectively and that the EU prohibition does not take effect until December 2027. As a result, both are included among the partners facing potential duties.

Under the proposal, the EU, Canada, Mexico, Taiwan and the United Kingdom would be subject to 10% tariffs, while China, Japan, India, South Korea, Brazil and Switzerland would face 12.5% tariffs. The tariffs would not apply immediately and are open to public comment and administrative review. The administration has separately indicated plans for 25% tariffs on certain Brazilian goods.

The European Commission responded that it shares US concerns regarding forced labor but considers tariffs imposed on these grounds unjustified. It noted the July agreement under which the United States and the EU set a 15% tariff ceiling on most goods and stated that it expects the terms of that agreement to be observed. A UK government spokesperson said existing legislation, including the Modern Slavery Act, addresses forced-labor concerns and that the government continues to discuss the issue with US officials. The spokesperson added that preferential tariff access for UK goods under the current bilateral arrangement remains unchanged.

The proposed duties would apply to a range of manufactured and agricultural products. Administration officials have indicated that the section 301 process allows additional legal avenues for addressing trade practices judged to affect US economic security. Trading partners have been invited to submit comments on the report’s findings and the tariff schedule before any final determination.