United States President, Donald Trump, has proposed fresh tariffs ranging from 10 per cent to 12.5 per cent on about 60 countries, including the United Kingdom, the European Union and Australia, over allegations that they have failed to adequately prevent the importation of goods produced through forced labour.
The proposal marks a significant escalation in Trump’s renewed protectionist trade strategy, coming at a time of heightened legal and diplomatic tension over previous tariff regimes that have faced repeated court challenges in the United States.
The European Union has already pushed back strongly against the move, insisting that Washington should comply with the tariff agreement reached between both sides in July last year. EU officials argue that any unilateral imposition of additional tariffs would violate the spirit and structure of the existing trade framework, which was designed to stabilise transatlantic commerce.
The dispute unfolds against the backdrop of a series of judicial setbacks for Trump’s trade policies. In February, the US Supreme Court ruled that his “Liberation Day” tariffs were unlawful. Although the administration later introduced a blanket 10 per cent tariff, a US trade court ruled last month that the measure was also illegal. Despite these rulings, the tariffs remain temporarily in force pending appeal, keeping uncertainty high across global markets.
If implemented, the new tariff regime would affect several of Washington’s largest trading partners, including Canada, Japan, Norway, Taiwan and China. The proposal is widely viewed by analysts as an attempt by the administration to repackage its trade restrictions under a different legal justification—shifting from broad protectionism to forced labour enforcement.
The administration has also signalled an additional 25 per cent tariff on imports from Brazil, further intensifying trade tensions with key emerging and developed economies.
US Trade Representative, Jamieson Greer, defended the proposed measures, arguing that global supply chains tainted by forced labour place American workers at a disadvantage.
“The failure of our most significant trading partners to tackle the importation of goods produced with forced labour is unacceptable. This creates a situation where American workers must compete on an uneven global playing field. We will no longer accept this inequality,” Greer said.
However, the European Commission pushed back, acknowledging concerns over forced labour but maintaining that tariffs are not the appropriate policy tool. It reaffirmed its commitment to the existing transatlantic trade arrangement, which includes a 15 per cent tariff framework on most goods, and warned against actions that could destabilise global trade cooperation.
The policy debate draws on a 98-page report compiled under Section 301 of the US Trade Act of 1974, which assessed global compliance with forced labour restrictions. The report found that only a limited number of jurisdictions—including Canada, the European Union, Indonesia, Mexico, Pakistan and Ecuador—have formal import restrictions targeting forced labour-linked goods. However, US officials argue that enforcement remains inconsistent and insufficient across key markets.
Based on its findings, the report recommends 10 per cent tariffs on imports from the EU, Canada, Mexico, Taiwan and the UK, while higher tariffs of 12.5 per cent would apply to countries such as China, Japan, India, South Korea, Brazil and Switzerland.
The proposed measures will now undergo a period of public consultation and review before any final decision is taken, leaving businesses and governments bracing for further uncertainty in global trade relations.
