US proposes new tariffs over forced labour concerns

The United States has proposed new tariffs of ten and 12.5 per cent on imports from 60 economies, arguing that the countries concerned have failed to adequately prevent imports of goods produced with forced labour. The proposed measures were announced by the Office of the US Trade Representative (USTR) following a Section 301 investigation.

According to the USTR, imports from the European Union, the United Kingdom, Canada and several other economies would be subject to an additional ten per cent duty, while imports from countries including China, India and Japan would face tariffs of 12.5 per cent. The proposal is subject to a public consultation process, with hearings scheduled for early July.

The move is widely seen as an attempt by the Trump administration to rebuild parts of its tariff regime after the US Supreme Court struck down earlier tariffs imposed under emergency powers legislation in February 2026. The court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorise the president to impose tariffs, forcing the administration to seek alternative legal grounds for new trade measures.

The proposal has already drawn criticism from several trading partners, including the EU, which argues that it has adopted some of the world's strictest legislation to combat forced labour in supply chains.

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