Key facts
- New US tariffs targeting imports made with forced labor are now in effect for over 80 countries.
- The tariffs were levied under Section 301 of the Trade Act of 1974.
- Tariff rates are either 10% or 12.5%.
- The U.S. claims countries failed to enforce a prohibition on goods produced with forced labor.
- Brazil, Australia, and the textile industry have criticized the new tariffs.
The Trump administration has implemented new tariffs on goods from over 80 countries, citing their alleged failure to prohibit and effectively enforce bans on imports produced with forced labor. These tariffs, ranging from 10% to 12.5%, were imposed under Section 301 of the Trade Act of 1974, a legal provision previously used to impose sweeping tariffs on Chinese imports.
The U.S. Trade Representative's office stated it consulted with the investigated economies and held public hearings, but critics argue the evidence for non-enforcement is weak and the move is arbitrary. Brazil condemned the tariffs as an unjustified manipulation of human rights issues, while Australia questioned the rationale for its own tariff.
Some industries, like the U.S. textile sector, have expressed concern over carve-outs that exempt certain imports based on specific trade conditions, arguing these exemptions could harm domestic manufacturers. Experts suggest that a short-term path for relief from these new tariffs is unlikely, as countries would need to prove to Washington's satisfaction that they are enforcing forced-labor import bans.