Trump administration threatens tariffs on imports from 60 economies over forced labour

The administration of US President Donald Trump has proposed new tariffs of up to 12.5 per cent on imports from China and dozens of other trading partners, using a forced-labour investigation to advance what analysts see as a bid to rebuild its tariff regime after recent court setbacks.

The Office of the US Trade Representative (USTR) said on Tuesday that China and 59 other economies failed to prohibit or adequately restrict US imports made with forced labour, subjecting them to punitive action under Section 301 of the Trade Act of 1974.

Trading partners decried the move.

China’s Foreign Ministry said the US findings were a pretext for “political manipulation”, while Bernd Lange, chairman of the European Parliament’s trade committee, termed the US findings “utterly absurd”, arguing that the EU had already adopted some of the world’s strictest rules targeting products made with forced labour.

As outlined, China, Japan, India, South Korea, Australia and Vietnam would face tariffs of 12.5 per cent under the plan. And the European Union, Britain, Canada and Mexico would face 10 per cent levies because they have committed to forced-labour import restrictions.

The proposal is subject to public comment due by July 6 and hearings on July 7 before any final decision, although analysts said the outcome appeared largely preordained.