Politics

/

ArcaMax

US sets new forced-labor duties as Trump rebuilds tariff wall

Alicia Diaz and Laura Curtis, Bloomberg News on

Published in Political News

WASHINGTON — The United States will collect duties of between 10% and 12.5% on imports from most major trading partners, its biggest move yet to reconstruct President Donald Trump’s tariff wall that was pierced by the Supreme Court.

The new levies follow an investigation into the alleged failure of around 60 economies to prevent forced labor in their supply chains to the detriment of American workers. Goods from some 10 trading partners deemed to have adopted forced-labor restrictions will be subject to 10% tariffs, including Mexico, the United Kingdom, Canada and India.

Duties on items from the European Union and Taiwan will be at least 10% and products from Japan, Switzerland and South Korea will be taxed at at least 12.5% in a way that complies with the trade agreements they reached with the U.S., according to a Federal Register notice published Thursday. Products from dozens of others will face a 12.5% charge.

The new duties take effect Friday at 12:01 a.m. New York time, according to the notice. The levies won’t apply to certain goods already loaded onto vessels before that time.

The forced-labor duties are Trump’s broadest move toward restoring his protectionist tariff regime since his earlier levies were struck down by the high court. After that setback he instituted a 10% global import tax, which expires Friday. The timing of the new charges ensure there will be no gap between the two.

“The United States has had a forced labor import ban for nearly a century, and rigorously enforces it,” U.S. Trade Representative Jamieson Greer said in a statement. “It’s well past time for our trading partners to do the same.”

One senior administration official rejected the idea that Trump was imposing the new tariffs purely as a replacement to the earlier duties that were struck down, but also said the president would use all the tools at his disposal and won’t allow his trade policy to be undermined by a court decision.

The official suggested the administration had planned to impose the forced-labor tariffs in any case and was rolling them out now to avoid upheaval for U.S. businesses.

The administration telegraphed the move last month, when it released the outcome of its forced-labor investigation. There will be some changes from the original proposal, according to a senior administration official who briefed reporters before the announcement was made. That includes India securing a 10% levy instead of the original, threatened 12.5% level.

Imports such as fuel, foods and fertilizers will be exempt from the new tariffs, as well as products such as automobiles, metals and drugs that are covered by separate, industry-specific levies. Items covered by the North American trade agreement with Mexico and Canada will also be excluded.

Exemption requests

The Trump administration has received numerous requests for thousands further exemptions, that official said. The plan will include global and country-specific exemptions based on commitments from existing deals Trump struck with foreign governments, according to the official.

Greer is spearheading Trump’s redesigned trade policy, targeting unfair practices abroad using more legally tested statutes that require months of procedures and public engagement. The more deliberative approach stands in contrast to the immediacy and unpredictability of Trump’s tariff barrages through much of 2025.

Still, that may not stop some importers from challenging the new duties in court.

Saddling American importers with costs carries risks politically for Trump and his fellow Republicans, less than four months from midterm elections where the focus for Democrats is the elevated cost of living. That pressure is intensifying as the Iran war makes energy, food and other commodities more expensive.

Blake Harden, a trade expert with the consultancy Ernst & Young, said Trump isn’t finished with tariffs or disrupting the status quo.

 

Much ‘uncertainty’

“There’s still a lot of uncertainty hanging out there. We still have the opportunity for a lot of tariffs this year,” she said. “Prior to this week there was sort of just a bit of a lull and maybe it felt like there was more certainty than there is. There’s this thing I keep telling folks: There’s a lot to come still as we get into this year.”

USTR proposed the latest duties following a probe under Section 301 of the Trade Act of 1974. That report recommended a 12.5% duty for countries deemed to lack laws that ban imports produced with forced labor. A 10% import tax was recommended for products from economies that have such bans in place but don’t sufficiently enforce them, or have committed to doing so.

Countries from India and to Norway have pushed back against the allegations. In Canada, a bill introduced in June is designed to strengthen government’s “ability to identify, intercept and prohibit goods linked to forced labor at the border, while providing certainty and transparency for businesses operating in or trading with Canada,” according to a public filing in the case.

The White House’s decision comes on the heels of a July 15 announcement that the U.S., also invoking Section 301, will begin charging importers a 25% tariff on imports of certain goods from Brazil following an investigation alleging that the country engaged in unfair trade practices.

The raft of 301 investigations includes a review of U.S. trading partners’ excess manufacturing capacity, though its unclear when the findings of that probe will be released, or whether any future duties from that investigation would be stacked on top of those proposed under the forced labor investigation.

Greer said recently that the excess capacity probe is taking longer than the investigation into forced labor. “We’re trying to make sure that we’re actually living up to the letter of the law,” he said in an interview with Bloomberg Television last week.

This week, Trump proposed tariffs on Canadian goods under a never-before-used trade authority — Section 338 — though those would only affect about 5% of U.S. imports from its northern neighbor and would take effect Aug. 19 depending on how negotiations go.

Complicating the rollout are several deals the Trump administration negotiated with economies including Japan, South Korea, the UK and the European Union. Greer has said Washington would abide by commitments made in those agreements.

Earlier on Thursday, Greer lashed out at the EU in a statement, saying a European Commission announcement of a fine against Alphabet Inc.’s Google and a recent “state-backed” loan to Toulouse, France-based Airbus SE risk undermining transatlantic trade stability.

Meanwhile, U.S. Customs and Border Protection is currently issuing refunds on Trump’s so-called reciprocal tariffs that the high court ruled illegal in February. The recipients are thousands of American importers including Nike Inc., which said last month that it expects to recoup almost $1 billion.

Still, “tariffs remain a dynamic cost headwind that we expect to continue looking forward,” said Matthew Friend, Nike’s chief financial officer, said during a conference call in late-June.

_____

With assistance from Shawn Donnan.

_____


©2026 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.

 

Comments

blog comments powered by Disqus

 

Related Channels

The ACLU

ACLU

By The ACLU
Amy Goodman

Amy Goodman

By Amy Goodman
Armstrong Williams

Armstrong Williams

By Armstrong Williams
Austin Bay

Austin Bay

By Austin Bay
Ben Shapiro

Ben Shapiro

By Ben Shapiro
Betsy McCaughey

Betsy McCaughey

By Betsy McCaughey
Bill Press

Bill Press

By Bill Press
Bonnie Jean Feldkamp

Bonnie Jean Feldkamp

By Bonnie Jean Feldkamp
Cal Thomas

Cal Thomas

By Cal Thomas
Clarence Page

Clarence Page

By Clarence Page
Danny Tyree

Danny Tyree

By Danny Tyree
David Harsanyi

David Harsanyi

By David Harsanyi
Debra Saunders

Debra Saunders

By Debra Saunders
Dennis Prager

Dennis Prager

By Dennis Prager
Dick Polman

Dick Polman

By Dick Polman
Erick Erickson

Erick Erickson

By Erick Erickson
Froma Harrop

Froma Harrop

By Froma Harrop
Jacob Sullum

Jacob Sullum

By Jacob Sullum
Jamie Stiehm

Jamie Stiehm

By Jamie Stiehm
Jeff Robbins

Jeff Robbins

By Jeff Robbins
Jessica Johnson

Jessica Johnson

By Jessica Johnson
Jim Hightower

Jim Hightower

By Jim Hightower
Joe Conason

Joe Conason

By Joe Conason
John Stossel

John Stossel

By John Stossel
Josh Hammer

Josh Hammer

By Josh Hammer
Judge Andrew P. Napolitano

Judge Andrew Napolitano

By Judge Andrew P. Napolitano
Laura Hollis

Laura Hollis

By Laura Hollis
Marc Munroe Dion

Marc Munroe Dion

By Marc Munroe Dion
Michael Barone

Michael Barone

By Michael Barone
Mona Charen

Mona Charen

By Mona Charen
Rachel Marsden

Rachel Marsden

By Rachel Marsden
Rich Lowry

Rich Lowry

By Rich Lowry
Robert B. Reich

Robert B. Reich

By Robert B. Reich
Ruben Navarrett Jr.

Ruben Navarrett Jr

By Ruben Navarrett Jr.
Ruth Marcus

Ruth Marcus

By Ruth Marcus
S.E. Cupp

S.E. Cupp

By S.E. Cupp
Salena Zito

Salena Zito

By Salena Zito
Star Parker

Star Parker

By Star Parker
Stephen Moore

Stephen Moore

By Stephen Moore
Susan Estrich

Susan Estrich

By Susan Estrich
Ted Rall

Ted Rall

By Ted Rall
Terence P. Jeffrey

Terence P. Jeffrey

By Terence P. Jeffrey
Tim Graham

Tim Graham

By Tim Graham
Tom Purcell

Tom Purcell

By Tom Purcell
Veronique de Rugy

Veronique de Rugy

By Veronique de Rugy
Victor Joecks

Victor Joecks

By Victor Joecks
Wayne Allyn Root

Wayne Allyn Root

By Wayne Allyn Root

Comics

Tim Campbell Al Goodwyn Bill Bramhall Steve Breen John Cole Steve Kelley