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Trump tariffs on forced labor goods may worsen issue, experts say

Created at 4 Jun · 8:28 AM2 sources↑ Market-relevant2 events
IN SHORT

President Donald Trump's proposed tariffs on countries failing to curb trade in goods made with forced labor may not effectively combat modern slavery and could potentially worsen the issue, according to experts and human rights groups. The plan is seen by some as a new justification for trade tariffs rather than a genuine effort to address forced labor.

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Key Numbers

10% or 12.5%proposed additional duties
60countries targeted by proposed tariffs
27.6 millionpeople estimated to be in forced labor globally
2.7 millionincrease in forced labor cases since 2016
2016year of previous global forced labor estimates
15%capped U.S. tariff rate on most EU goods
December 2027date EU Forced Labour Regulation starts to apply

Who's Involved

Donald Trump
proposed new tariffs on trade partners accused of failing to crack down on forced labor
U.S. Trade Representative's office
issued the plan from a Section 301 unfair trade practices investigation
Ram Ben Tzion
co-founder and CEO of digital shipment-vetting platform Publican, stated tariffs are a new justification for trade tariffs
International Labour Organization
provided global estimates on forced labor
European Commission
stated the tariffs were unjustified and reiterated commitment to trade deal
Walk Free
international human rights group, stated no G20 country is doing enough to combat forced labor
Andrew Wilson
Deputy Secretary-General of the International Chamber of Commerce, expressed concern over the arbitrary nature of the tariffs
Sebastian Ruenz
ESG and supply chain specialist at law firm Taylor Wessing, agreed the EU's framework is comprehensive
Hélène de Rengerve
senior advocate for corporate accountability at Human Rights Watch, questioned the incentive of tariffs and feared they could be counterproductive

↳ Why This Matters

The proposed tariffs highlight a global challenge in combating forced labor, with differing approaches between the U.S. and EU potentially impacting international trade and the effectiveness of anti-slavery efforts. Experts question whether tariffs are the right tool to address complex supply chain issues.

Key facts

  • President Donald Trump proposed additional duties on imports from 60 countries for failing to curb trade in goods made with forced labor.
  • Experts, business groups, and some human rights groups believe the tariffs will do little to fight modern slavery and could make things worse.
  • The plan is seen by some as a new justification for trade tariffs.
  • The International Labour Organization estimates 27.6 million people are in forced labor globally.
  • The EU's Forced Labour Regulation, set to apply in December 2027, is criticized by the USTR as having a higher bar for proof than U.S. rules.
  • International Chamber of Commerce stated the "arbitrary nature" of the tariffs is a cause for concern.

President Donald Trump's administration has proposed additional duties of 10% or 12.5% on imports from 60 countries, asserting they have failed to curb trade in goods made with forced labor. However, experts, business groups, and some human rights organizations argue that these tariffs will be ineffective in fighting modern slavery and could potentially exacerbate the problem. Ram Ben Tzion, CEO of digital shipment-vetting platform Publican, suggested the measure is primarily a new justification for trade tariffs. The International Labour Organization estimates that 27.6 million people are currently in forced labor globally, with nearly half of cases found in export-related sectors like manufacturing, construction, agriculture, fishing, and mining. The U.S. plan has drawn scrutiny, particularly concerning its criticism of the EU's Forced Labour Regulation, which is set to apply in December 2027 and is described as having a higher bar for proof. The European Commission rejected the tariffs as unjustified. International human rights group Walk Free noted that the U.S. is among the top 10 countries with the largest numbers of people living in modern slavery. The International Chamber of Commerce expressed concern over the "arbitrary nature" of the tariffs, questioning their effectiveness in controlling modern slavery and suggesting the EU's planned measures may eventually be broader. Experts like Sebastian Ruenz noted the EU ban covers products made with forced labor worldwide and that countries like Germany and France already have national standards. Human Rights Watch's Hélène de Rengerve argued that the tariffs are not primarily targeting the most extreme forms of forced labor and may create political resistance, potentially being counterproductive.

Frequently asked questions

President Trump's administration proposed additional duties of 10% or 12.5% on imports from 60 countries for failing to curb trade in goods made with forced labor.

Experts, business groups, and some human rights groups believe the tariffs will do little to fight modern slavery and could potentially worsen the issue, suggesting they are a new justification for trade tariffs.

The EU's Forced Labour Regulation, starting in December 2027, is criticized by the USTR as having a higher bar for proof, while experts suggest the EU's framework may ultimately be more comprehensive and cover products made with forced labor worldwide.

The International Labour Organization estimates there are 27.6 million people in forced labor globally, an increase of 2.7 million since 2016, with nearly half of cases found in export-related sectors.

What Happens Next

01The EU's Forced Labour Regulation starts to apply in December 2027.

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How It Developed

5 Jun · 6:05 AM
New reporting suggests Trump's tariffs on forced labor may not effectively combat modern slavery and could worsen the issue.
Reuters via PiQSuite
4 Jun · 8:00 AM
Donald Trump has accused Canada of using forced labour, a claim Canadian officials have rejected.
Yahoo News | Business Finance, Stock Market, Quotes, News via PiQSuite

Sources

T1
Things to know about Donald Trump's forced labour claims against Canadam.piqsuite.com
T1
Trump's latest tariff salvo no fix for global issue of forced laborm.piqsuite.com

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