Donald Trump has threatened to impose tariffs of between 10% and 12.5% on 60 trading partners, including the UK, Canada, the EU, and Australia, over alleged failures to address forced labour. The proposed levies are part of an effort to circumvent court-imposed limits on his tariff powers, following a US Supreme Court ruling in February that deemed his previous 'liberation day' tariffs illegal.
The EU immediately criticised the move, arguing that it breached the spirit of a tariff agreement reached last July. A European Commission statement said the bloc 'fully shares' US concerns about forced labour but considers the tariffs unjustified, and expects the US to respect the terms of the existing deal.
The tariffs are based on investigations under Section 301 of the Trade Act of 1974. According to a 98-page report, 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 noted that the EU's ban on forced labour imports does not take effect until December 2027.
The UK government responded by stating it has already tackled forced labour through legislation such as the Modern Slavery Act. A spokesperson said: 'We continue to engage regularly with the US administration as part of our negotiations, and have made clear the actions we’re taking. The preferential access that UK businesses benefit from under our existing agreement remains in place.'
The proposed tariffs would not take effect immediately and are subject to public comment and review. The move threatens to unsettle trading partners, including UK Prime Minister Keir Starmer, who have sought to build trust with Trump and manage the costs of trading with his administration.
