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Trump Proposes 10-12.5% Tariffs on 60 Trading Partners Over Forced Labor

New York Times Business •
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President Trump's administration announced plans to impose tariffs ranging from 10 percent to 12.5 percent on 59 countries plus the European Union, citing failures to combat imports made with forced labor. The duties target major trading partners including China, Brazil, South Korea, Switzerland and the United Kingdom, representing the administration's latest attempt to rebuild its tariff agenda after legal setbacks.

Trade Representative Jamieson Greer said investigations found these nations lacked effective laws prohibiting forced labor imports, invoking Section 301 authority. This follows the Supreme Court's February ruling that struck down Trump's previous IEEPA-based tariffs for exceeding presidential authority. The administration also proposed 10 percent duties on EU, Canada and Mexico imports, arguing the bloc's forced labor ban won't take effect until end of 2027.

China's foreign ministry spokeswoman Mao Ning rejected the allegations, stating there is 'no such thing as forced labor in China' and opposing 'unilateral tariff measures.' The European Commission's Olof Gill emphasized the EU's commitment to eliminating forced labor goods while noting existing joint agreements with Washington on labor rights protection.

The proposal threatens to escalate tensions with America's closest allies already strained by trade negotiations. Hearings begin July 7 on the tariffs, which could reshape global supply chains and create competitive advantages for countries deemed compliant with labor standards. Agricultural products like beef, bananas and coffee receive exemptions, but industrial goods face potential cost increases affecting multinational profit margins.