WASHINGTON (AP) — In an effort to reestablish tariffs, the Trump administration has introduced a proposal imposing double-digit tariffs on imports from several major U.S. trading partners. This proposal follows a Supreme Court decision that nullified previous tariffs just months ago.
This week, the administration suggested tariffs targeting 16 economies, including Canada, Mexico, the European Union, Taiwan, and the United Kingdom, with a 10% levy due to alleged non-enforcement of bans on forced labor. Additionally, 44 other countries, such as China, Japan, India, South Korea, and Switzerland, could face a 12.5% import tax.
The tariffs are part of President Trump’s strategy to recover revenue lost after the Supreme Court struck down global tariffs imposed last year. The move is expected to disrupt relations with key trading partners who have already faced similar tariffs.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” stated U.S. Trade Representative Jamieson Greer. He emphasized the unfair competition American workers face due to this issue.
According to Greer’s office, failing to prevent such imports is “unreasonable and burdens or restricts U.S. commerce.”
The tariffs will be initially covered by U.S. importers, who might transfer the increased costs to consumers. To alleviate the impact, the administration plans to exempt specific products like aircraft parts, certain foods, and rare earth minerals. Exemptions also extend to goods from Canada and Mexico due to a North American trade agreement.
These tariffs are not set to be implemented immediately, as they are subject to public commentary and review, with hearings scheduled to start on July 7.
China has rejected the forced labor allegations, with Foreign Ministry spokesperson Mao Ning stating, “There is no such thing as forced labor in China, and we oppose using it as an excuse to engage in political manipulation.” The U.S. maintains that imports from China’s Xinjiang region risk involving forced labor, a claim Beijing denies.
Critics, including Bernd Lange of the European Parliament’s trade committee, argue the tariffs are a pretext for reinstating previously challenged tariffs. Lange criticized the move on social media, highlighting the EU’s stringent rules against forced labor.
This initiative underscores the Trump administration’s commitment to maintaining protective tariffs despite legal challenges. The Supreme Court’s February ruling invalidated tariffs imposed using the 1977 International Emergency Economic Powers Act, leading to a potential refund for affected companies.
Subsequently, Trump imposed temporary global tariffs, set to expire on July 24, which a specialized trade court also deemed illegal. Nonetheless, tariff collection continues amid ongoing legal processes.
Revenue from tariffs, crucial for offsetting tax cuts, has diminished following legal setbacks. Collections peaked at over $31 billion last October but fell to $22 billion by March and April, according to the Treasury Department.
To compensate for revenue losses, Trump and Treasury Secretary Scott Bessent have invoked Section 301 of the Trade Act of 1974, historically resistant to legal challenges. This section allows tariffs against nations with “unjustifiable,” “unreasonable,” or “discriminatory” practices.
Trade lawyer Ryan Majerus commented, “What’s somewhat brilliant about this way of approaching 301 is that politically it’s very hard to argue that you shouldn’t go after forced labor.”
Canadian Prime Minister Mark Carney indicated upcoming legislation to address forced labor in supply chains, emphasizing Canada’s strong stance against such practices.
The U.S. Trade Representative’s report on forced labor asserts that importing goods made with forced labor breaches fair trade rules, even if domestic bans are enforced.
Majerus anticipates the new tariffs will be ready before the temporary ones lapse, noting the expedited pace of the current investigation. The administration is also examining whether overproduction by 16 trading partners, including China and Japan, disadvantages U.S. manufacturers.
Additionally, a 25% tariff on Brazil has been proposed, citing “unreasonable” practices like weak anti-corruption enforcement.
The report defines forced labor as work coerced under threat, without voluntary consent, citing a UN estimate of 27.6 million people in forced labor as of 2021. Products like rice from Myanmar, tobacco from Malawi, beef from Brazil, and Chinese cotton and polysilicon are particularly highlighted.
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Elaine Kurtenbach reported from Bangkok. Rob Gillies in Toronto contributed to this story.
