U.S. tariff plan targets 60 economies over forced labor rules

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U.S. tariff plan targets 60 economies

Highlights

The U.S. proposed 10% or 12.5% tariffs on imports from 60 economies.
The action targets alleged failures to block goods made with forced labor.
The proposal follows a Supreme Court ruling that limited Trump’s earlier tariff authority.

New section 301 tariffs

According to Reuters, the Office of the U.S. Trade Representative proposed additional duties of 10% or 12.5% under Section 301 of the Trade Act of 1974. Economies with full or partial forced labor import bans would face a 10% tariff, while others would face 12.5%, according to reporting on the USTR proposal. Canada, Mexico, Taiwan, and the United Kingdom are among those facing 10% duties, while China, Japan, India, South Korea, Brazil, and Switzerland would be hit with 12.5%.

USTR said the 60 economies failed to impose or effectively enforce bans on imports made with forced labor, calling the practice a burden on U.S. commerce. Trade Representative Jamieson Greer said the failure to address such imports forces American workers to compete on an “unlevel playing field.”

Trade policy rebuilt after court ruling

The proposal is part of Trump’s effort to rebuild his tariff agenda after the Supreme Court ruled in February that he exceeded his authority by using emergency powers to impose sweeping duties. The new tariffs would not take effect immediately and remain subject to public review, with hearings scheduled to begin July 7.

The U.S. is also seeking public input on a new U.S.-China Board of Trade, a mechanism agreed after Trump’s meeting with Chinese President Xi Jinping. The board could identify non-sensitive goods eligible for lower tariff treatment, even as broader tariffs remain in place.

Markets hold near records

The tariff announcement came as Wall Street remained near record highs. The S&P 500 rose 0.1% Tuesday to 7,609.78, edging past the all-time high set a day earlier, while the Dow gained 0.4% and the Nasdaq added less than 0.1%.

Supply chains face another cost test

The proposal matters because it could raise costs for importers across major U.S. trading relationships, including China, the EU, Japan, Canada and Mexico.

Companies with global sourcing networks may face higher duties, more documentation demands and renewed pressure to prove that their supply chains are free of forced labor.

For markets, the timing is delicate: equities remain near records, but a wider tariff regime could revive inflation concerns and complicate the Federal Reserve outlook.

Earlier, we reported that EU lawmakers gave the green light to the U.S. trade deal before the Trump tariff deadline.

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