The Trump administration has announced a new round of tariffs on imports from 60 economies, using failures to prohibit or enforce bans on goods produced with forced labour as the basis for one of the broadest trade actions of the president’s second term.

The Office of the United States Trade Representative said the measures would apply rates of either 10% or 12.5%, subject to exemptions and special treatment for certain products. The affected economies account for more than 99% of US imports, according to the administration.

Countries including the United Kingdom, Canada, India, Pakistan, Mexico and several south-east Asian economies were placed in the 10% category after adopting, partially enforcing or committing to forced-labour import restrictions. Other economies face the higher 12.5% rate, while separate calculations apply to some goods from the European Union, Japan, South Korea, Taiwan and Switzerland.

Washington says the policy is intended to push trading partners towards stronger enforcement against forced labour in global supply chains. The administration argues that countries which fail to block such goods give producers using abusive labour practices an unfair cost advantage.

A new legal route for Trump’s tariff strategy

The action was taken under Section 301 of the Trade Act of 1974 following investigations, public hearings and consultations with foreign governments. The legal route is significant because earlier tariff measures imposed under emergency powers were struck down by the US Supreme Court.

By relying on a formal trade investigation, the White House is attempting to place the new duties on a firmer statutory foundation. Legal challenges remain possible, especially over the breadth of the action and the relationship between labour enforcement and tariffs covering such a large share of global trade.

The administration has exempted categories including some raw materials, products already subject to national-security tariffs and goods whose inclusion could cause serious supply disruption. Even with exemptions, the scale of the measures means businesses across retail, manufacturing and logistics are likely to face new compliance and pricing decisions.

Forced labour and protectionism

Human-rights advocates have long pressed governments to prevent goods made with forced labour from entering global markets. Some may welcome stronger enforcement, but the use of broad tariffs has also raised questions about whether a human-rights objective is being combined with a wider protectionist agenda.

Trading partners are expected to examine both the legal justification and the practical impact. Governments may seek exclusions, negotiate enforcement commitments or consider retaliatory measures if they conclude the tariffs are discriminatory.

For American consumers and companies, the central issue is who ultimately pays. Import duties are collected from US importers, which can absorb the cost, pass it through supply chains or raise prices. The impact will vary depending on the product, the availability of alternative suppliers and the ability of businesses to renegotiate contracts.

The new measures arrive as the administration continues to use tariffs as a central instrument of foreign and economic policy. That approach has blurred the boundary between trade enforcement, industrial policy, diplomacy and domestic politics.

The immediate message from Washington is that access to the US market will increasingly depend not only on price and origin, but also on whether trading partners meet standards set by the United States. The longer-term question is whether the policy reduces forced labour or instead triggers another cycle of retaliation and higher costs.