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US to impose forced labor tariffs on many trading partners
US to impose forced labor tariffs on many trading partners
Jon Shelton | Emmy Sasipornkarn with AP, AFP, Reuters07/23/2026July 23, 2026The Trump administration has unveiled new tariffs on dozens of US trading partners for what it says is lax enforcement of "forced labor" bans. The new tariffs arrive just as a 10% global duty was set to expire.
https://p.dw.com/p/5HfKaThe 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.
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 hits Canada with 50% tariffs in major trade escalation
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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.
EU to seek clarification from US, says top diplomat Kallas
European Union foreign policy representative Kaja Kallas on Friday described Trump's move as "a negative surprise," adding that the bloc would seek clarification.
Speaking on the sidelines of the ASEAN summit in Manilla, Philippines, Kallas said accusations that the EU was falling short on labor law enforcement were unfounded.
"If you compare our labor laws to the ones of the United States, I mean, we have paid vacations, we have very good labor conditions for our employees, so it's not really grounded."
Noting that the bloc had lived up to its end of a transatlantic trade deal struck with the US last year, Kallas expressed shock at this latest move: "We had a deal with America and we have kept to that deal, that side of the deal. That's why this is a negative surprise that this agreement is not kept."
The European Commission, the bloc's executive body, quickly contradicted Kallas' comments early Friday morning, voicing relief that Trump's punitive tariffs were not worse.
"The EU notes positively the fact that this outcome is in line with the US tariff commitments agreed under the EU-US Joint Statement," said a commission spokesman.
Those commitments saw the EU agree to drop import taxes on US industrial goods, while Washington leveled 15% across the board tariffs on most EU products.
The commission's optimism appears to be based on the fact that the new tariffs were not added to existing "most-favored nation" fees and also maintain previously negotiated EU exemptions.
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 (WTO) 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."
Edited by: Karl Sexton
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