The United States is preparing a sweeping new round of forced labor tariffs that could hit goods from dozens of its most important trading partners. The Trump administration’s proposal, unveiled Wednesday, would add duties of 10% or more on imports from countries it accuses of failing to keep products made with forced labor out of global supply chains.

What the New Tariffs Would Do

According to a report released early Wednesday by the U.S. Trade Representative, the proposed forced labor tariffs would be applied in two tiers depending on the country involved.

The first group, facing an additional 10% tariff, includes:

• Canada
• Mexico
• Taiwan
• The United Kingdom
• Several other nations and territories

A steeper 12.5% additional tariff would target a larger set of economies, among them:

• China
• Japan
• India
• South Korea
• Brazil
• Switzerland

In total, the investigation reviewed 60 countries, all of which were found to have fallen short in enforcing a ban on importing goods produced through forced labor.

The Argument Behind the Move

USTR Ambassador Jamieson Greer framed the measures as a matter of fairness for American workers. He argued that when major trading partners allow goods made with forced labor into the global market, it forces U.S. workers to compete on an uneven playing field.

Greer insisted that every trading partner needs to do more to ensure trade does not end up rewarding or entrenching forced labor around the world. The USTR added that failing to stop such imports is “unreasonable” and places an unfair burden on American commerce.

How Forced Labor Was Defined

The report laid out a clear definition of forced labor, describing it as work extracted from someone under the threat of punishment, which the worker has not freely agreed to perform.

To underscore the scale of the problem, the USTR cited an estimate from the UN’s International Labor Organization indicating that roughly 27.6 million people were trapped in forced labor as of 2021.

The report also flagged specific products considered especially likely to involve forced labor, including:

• Rice from Myanmar
• Tobacco from Malawi
• Beef from Brazil
• Cotton and polysilicon from China

The U.S. has long warned that goods linked to China’s far-western Xinjiang region carry a high risk of forced labor, an accusation Beijing firmly denies regarding the predominantly Muslim area.

A Workaround for Legal Limits

The legal foundation for these forced labor tariffs is notable. The investigation was carried out under Section 301 of the Trade Act of 1974, a strategy that effectively allows the administration to sidestep restrictions the Supreme Court placed on its tariff powers.

In February, the court ruled that Trump had exceeded his authority by relying on a different statute, the International Emergency Economic Powers Act of 1977, to impose broad tariffs on trading partners. The administration has said it intends to appeal a separate federal order that would make companies eligible for refunds on duties paid under those earlier tariffs.

By grounding the new measures in Section 301, the administration appears to be building a more durable legal path for its trade agenda.

What Happens Next

These tariffs will not take effect right away. The proposal is open to public comment and review, with public hearings on the duties scheduled to begin on July 7.

The report also carved out some exceptions. Certain goods would either be exempt or face lower tariffs, including:

• Certain textiles
• Tomatoes
• Bananas
• Coffee
• Some metals

Importantly, the USTR stressed that even when a country bans forced labor within its own borders, importing goods made with forced labor still violates the principles of fair trade.

Pressure on Already Strained Partners

This latest wave of forced labor tariffs lands on trading partners that have weathered repeated tariff shocks since Trump returned to office early last year.

Just two weeks ago, the European Union approved a deal capping tariffs on most of its exports to the U.S. at 15%, an agreement reached only after fierce debate among the bloc’s 27 members and threats by European lawmakers to block it.

Trump also recently returned from a visit to China, where he and President Xi Jinping discussed opening Chinese markets to American businesses and boosting Chinese investment in U.S. industries. The two leaders agreed to establish separate boards of trade and investment, though few specifics were shared.

Meanwhile, the administration this week separately proposed 25% tariffs on imports from Brazil, accusing the world’s tenth-largest economy of unreasonable trade practices that burden U.S. commerce. The USTR pointed to weak anti-corruption enforcement and Brazil’s own tariffs as part of its justification.

The Bigger Picture

The push for forced labor tariffs reflects a broader strategy that blends moral arguments about human rights with hard-edged trade policy and legal maneuvering. By targeting forced labor specifically, the administration links economic pressure to an issue with strong public sympathy, while also crafting tariffs that may prove harder to challenge in court.

The key takeaways from the proposal include:

• Tariffs of 10% to 12.5% aimed at 60 countries accused of failing to block forced labor imports
• A legal pivot to Section 301 to avoid earlier Supreme Court limits
• Exemptions for select everyday goods like coffee, bananas, and tomatoes
• A timeline that delays implementation until after public hearings begin in July

For now, trading partners face weeks of uncertainty as they wait to see whether these proposals harden into reality, and how they might respond to yet another front in an increasingly complex global trade standoff.