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 in imports. The proposal marks the latest attempt by the US president to revive his signature trade policy after previous tariff measures were struck down by US courts.
The EU immediately criticised the plan, stating it expected the US to respect the tariff agreement reached in July 2023, which set 15% tariffs on most goods. Brussels argued that the new levies would breach the spirit of that deal and deemed them unjustified. The UK government noted it had already tackled forced labour through legislation such as the Modern Slavery Act, and stressed that existing preferential access for UK businesses remained unchanged.
The proposed tariffs would affect major partners including Canada, Japan, Norway, Taiwan, China and Brazil. Under the plan, the UK, EU, Canada, Mexico and Taiwan would face 10% tariffs, while China, Japan, India, South Korea, Brazil and Switzerland would be hit with 12.5% levies. The move comes after the US Supreme Court ruled in February that Trump's 'liberation day' tariffs were illegal, and a subsequent trade court ruling also found them unlawful, though they remain in place pending appeal.
The latest tariffs are based on investigations under Section 301 of the Trade Act of 1974 into the labour laws of 60 countries. A 98-page report concluded that only Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan had imposed forced labour import prohibitions, but the White House judged Canada and the EU to be failing to enforce their laws effectively. The new tariffs are subject to public comment and will not take effect immediately.
