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Forced-labor tariff replacement
President Donald Trump’s administration announced new import duties of 10% to 12.5% on 60 trading partners, replacing temporary worldwide tariffs that were set to expire at 12:01 a.m. Friday.
“On Thursday, the President of the United States imposed new tariffs ranging from 10% to 12”
The tariffs are aimed at combatting forced labor violations, with U.S. Trade Representative Jamieson Greer saying the levies were intended for countries that have failed to adopt and effectively enforce forced labor import prohibitions.
The Office of the U.S. Trade Representative said the 60 partners cover 99.4% of all U.S. imports, and the new duties take effect at 12:01 a.m. Friday.
NBC News reported that the wave of levies will be enacted under Section 301 of the Trade Act of 1974, after the Supreme Court struck down most of Trump’s earlier tariffs imposed under the International Emergency Economic Powers Act.
ABC News said the tariff closely resembles a proposal issued in June and that the levies were set to ramp up an effort to reconstruct far-reaching duties struck down by the Supreme Court earlier this year.
Greer’s statement and legal basis
Greer framed the move as both a human-rights and trade-practice correction, saying, "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," as the tariffs took effect Friday.
The BBC reported that the Office of the U.S. Trade Representative said the latest tariffs were being imposed on partners "for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour".
Newsweek said the administration expects the action to reignite debate over Trump’s aggressive trade agenda ahead of the November midterm elections, while also noting that the tariffs apply to economies accounting for roughly 99% of U.S. imports.
NBC News said the U.S. Trade Representative’s office carried out months-long investigations into trading practices before announcing the new duties under Section 301.
ABC News reported that the tariff was set to begin on the same day that a 10% global tariff announced immediately after the high court's ruling is set to expire.
Business impact and next probes
ABC News said importers typically offset the tax burden of tariffs in the form of higher prices for shoppers, and it warned the new levy risks elevated costs for some household goods as shoppers weather a bout of resurgent inflation set off by the Iran war.
“US imposes tariffs on dozens of trade partners over 'forced labour' imports The US is imposing new tariffs on around 60 trading partners accounting for the vast majority of its imports over claims they failed to properly stop forced labour”
NBC News said the new duties include a wide swath of exemptions, including on fertilizers and some types of fuel, and it also reported exemptions for some foods, autos, some types of metals and pharmaceuticals.
BBC said the office added that so far 10 trading partners had agreed to enact forced-labor bans in reciprocal trade agreements, while others faced the higher 12.5% rate.
France 24 reported that the U.S. Trade Representative’s office launched a probe into whether 16 countries—accounting for 70% of U.S. imports—have overproduced goods, a step that could lead to additional duties later this year.
NPR said the new tariffs take effect just as temporary 10% worldwide tariffs expire at 12:01 a.m. Friday, and it quoted Greer saying the United States has had a forced labor import ban for nearly a century and rigorously enforces it.
