Trump Administration Imposes New Section 301 Tariffs on Over 60 Nations Over Forced-Labor Concerns
The United States has announced 10% or 12.5% tariffs on more than 60 countries, citing failures to enforce forced-labor import bans, while many governments and industry groups dispute the justification and call the measures arbitrary.
The United States announced new import tariffs of 10% or 12.5% on more than 60 countries, invoking Section 301 of the Trade Act of 1974. The administration says the tariffs target nations that do not have, or do not effectively enforce, bans on goods produced with forced labor. The measures take effect as a temporary 10% worldwide tariff, which expired earlier this month, lapses.
The U.S. Trade Representative office said it consulted with all 60 economies, held two public hearings and received over 2,100 comments before finalizing the rates. Details of the consultations were not disclosed. Critics note that the tariff levels are uniform across countries with widely differing labor-rights records and that the evidence supporting the claims of non-enforcement is limited.
"The 301s allow a permanent tariff without going to Congress to settle the dispute," said Barry Appleton, a law professor and co-director of New York Law School’s Center for International Law.
"There’s not a lot of hard evidence there," said Scott Lincicome, vice president for general economics and trade policy at the Cato Institute.
"This suggests that no short-term path for countrywide relief from the new Section 301 tariffs will be available," said lawyer Patrick Childress, a partner at Holland & Knight and former U.S. trade official.
Brazil, which faces a 12.5% tariff, called the action "arbitrary and unjustified," and Australia’s trade minister said the country takes modern-slavery issues seriously. The textile industry expressed concern that exemptions for Bangladesh, Cambodia, Indonesia and Malaysia could disadvantage U.S. manufacturers.
The tariffs build on earlier U.S. legislation aimed at preventing forced-labor imports, including the Tariff Act of 1930, the Trade Facilitation and Trade Enforcement Act of 2016, and the Uyghur Forced Labor Prevention Act of 2021. However, past investigations have shown that forced-labor products can still enter U.S. markets.
Industry representatives at recent hearings called for clearer benchmarks and assistance to help trading partners improve enforcement, arguing that a more comprehensive approach is needed for the bans to be effective.