The US government, under President Donald Trump, has announced new tariffs ranging from 10% to 12.5% on imports from 60 countries. These nations account for 99% of products imported into the US. The move comes after accusations of insufficient action on banning goods produced through forced labor.
US Trade Representative Jamieson Greer emphasized that the US has rigorously enforced a longstanding ban on such imports. He urged other countries to follow suit. The new tariffs will replace temporary measures set to expire soon.
Trump has chosen these longer-term tariffs under Section 301 of the 1974 Trade Act. This law enables the president to impose tariffs if countries engage in unjustifiable or unreasonable trade practices. During his first term, Trump also used Section 301 against China, which withstood court challenges.
The administration has initiated an investigation under Section 301 to assess whether 16 countries, responsible for 70% of US imports, have engaged in excessive production, hurting American businesses. The investigation has not yet concluded.
Last year, Trump shifted the nation’s trade policy towards higher tariffs and reduced free trade. He invoked the International Emergency Economic Powers Act of 1977, imposing broad tariffs, citing the trade deficit as a national emergency. However, the Supreme Court countered this approach, requiring refund payments to importers.
In response, Trump announced global 10% tariffs under Section 122 of the 1974 Trade Act, which are set to expire soon. The forced labor tariffs were proposed last month, and some countries have since enforced stricter measures, lowering their tariff rates.
Tariffs will exempt certain products like oil, gas, and fertilizers. Goods qualifying for tariff-free status under the US-Mexico-Canada Agreement will also be exempt.
There has been criticism of the tariffs. Richard Neal, a prominent Democrat, considers the forced labor justification too convenient. He called for serious implementation of measures against forced labor, rather than using it as a pretense for questionable tariff policies.
Brazil condemned the tariffs as arbitrary and plans to retaliate through the World Trade Organization. Chile, also facing tariffs, defended its labor institutions and commitment to eradicating forced labor.
For US importers, the tariffs may result in higher consumer prices. Critics warn that the policy could be an electoral risk ahead of midterm elections.
Human rights advocates caution against accepting the rationale for the tariffs but recognize potential impacts on forced labor. Martina Vandenberg from The Human Trafficking Legal Center supported trade restrictions as one tool to address the issue. However, she emphasized the need for gradual implementation to give countries time to adopt meaningful enforcement mechanisms.
Dominic LeBlanc, Canada’s Trade Minister, was not surprised by the measure. He emphasized collaboration with the US for mutual benefits.
Kenya Davis from Boies Schiller Flexner highlighted the 2021 Uighur Forced Labor Prevention Act, banning imports from Xinjiang, as a key US initiative against forced labor. While its effectiveness is debated, it has raised awareness of the issue.
Isabelle Glimcher from NYU Stern Center noted that tariffs target countries based on imports, not domestic production. However, the threat of tariffs has driven policy changes in countries like India. The European Union also plans to implement forced labor regulations soon.
Anderson reported from New York. AP journalists Nayara Batschke in Santiago de Chile, Mauricio Savarese in Sao Paulo, and Jim Morris in Vancouver contributed.