Donald Trump has threatened to impose tariffs of between 10% and 12.5% on 60 trading partners, including the UK, the EU and Australia, over alleged failures to address forced labour. The proposal aims to revive his signature trade policy after court rulings blocked previous tariff measures.
The EU immediately responded, stating it expects the US to respect the tariff deal agreed last July and arguing that the proposed levies breach the spirit of that agreement. The UK government said it has already tackled forced labour through legislation, including the Modern Slavery Act, and that its existing trade agreement with the US remains unchanged.
The proposed tariffs stem from investigations under section 301 of the Trade Act of 1974. A 98-page report found that only Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan have not failed to impose a forced labour import prohibition. However, the White House judged Canada to be failing to enforce its laws, and the EU's ban on forced labour imports does not take effect until December 2027, leaving both vulnerable to tariffs.
Under the plan, the UK, EU, Canada, Mexico and Taiwan would face 10% tariffs, while China, Japan, India, South Korea, Brazil and Switzerland would face 12.5% levies. The tariffs are not immediate and are subject to public comment and review.
US Trade Representative Jamieson Greer said: 'The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field. We will no longer tolerate this disparity.'
The European Commission said it 'fully shares' US concerns about forced labour but considers the tariffs unjustified, and remains committed to the July deal. The threat comes after the US Supreme Court ruled Trump's 'liberation day' tariffs illegal in February, and a trade court later found his 10% across-the-board tariffs unlawful, though they remain in place pending appeal.
