US Proposes New Tariffs on Major Trading Partners Over Forced Labor Concerns

The U.S. Trade Representative's office, led by Ambassador Jamieson Greer, released a report proposing 10% additional tariffs on countries including Canada, Mexico, the UK, and Taiwan, and 12.5% tariffs on China, Japan, India, South Korea, Brazil, and Switzerland, among others, for allegedly failing to prevent imports of goods produced with forced labor. The action is grounded in Section 301 of the Trade Act of 1974 and represents a deliberate effort by the administration to establish a legally defensible tariff framework after the Supreme Court struck down its IEEPA-based tariffs earlier this year. The ILO estimates 27.6 million people are currently engaged in forced labor globally, generating approximately $236 billion in illegal profits annually, with the U.S. itself accounting for a disproportionate 23% of at-risk goods imports despite representing only 13% of global imports. Legal experts have flagged the investigation's unusually compressed three-month timeline and the novel legal theory that a foreign country's mere failure to prohibit forced labor imports constitutes an 'unreasonable' trade practice, predicting near-certain judicial challenges. Canada responded swiftly by tabling Bill C-35, which would create a public list of high-risk products linked to forced labor by region and shift the burden of proof onto importers, while Prime Minister Carney acknowledged Canada has been 'less effective' in enforcing its existing framework. The proposed U.S. tariffs are not yet in effect and are subject to public comment, with hearings scheduled to begin July 7.