US Sets New Forced-Labor Duties as Trump Rebuilds Tariff Wall

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessUS Sets New Forced-Labor Duties as Trump Rebuilds Tariff WallThe US will collect duties of between 10% and 12.5% on imports from most major trading partners, its biggest move yet to reconstruct President Donald Trump’s tariff wall that was pierced by the Supreme Court.Author of the article:Alicia Diaz and Laura Curtis You can save this article by registering for free here. Or sign-in if you have an account.aquelkl}qi{}aqn{bbd}3374_media_dl_1.png AAA(Bloomberg) — The US will collect duties of between 10% and 12.5% on imports from most major trading partners, its biggest move yet to reconstruct President Donald Trump’s tariff wall that was pierced by the Supreme Court.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe new levies follow an investigation into the alleged failure of around 60 economies to prevent forced labor in their supply chains to the detriment of American workers. Goods from some 10 trading partners deemed to have adopted forced-labor restrictions will be subject to 10% tariffs, including Mexico, the UK, Canada and India. Duties on items from the European Union and Taiwan will be at least 10% and products from Japan, Switzerland and South Korea will be taxed at at least 12.5% in a way that complies with the trade agreements they reached with the US, according to a Federal Register notice published Thursday. Products from dozens of others will face a 12.5% charge. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe new duties take effect Friday at 12:01 a.m. New York time, according to the notice. The levies won’t apply to certain goods already loaded onto vessels before that time.The forced-labor duties are Trump’s broadest move toward restoring his protectionist tariff regime since his earlier levies were struck down by the high court. After that setback he instituted a 10% global import tax, which expires Friday. The timing of the new charges ensure there will be no gap between the two. “The United States has had a forced labor import ban for nearly a century, and rigorously enforces it,” US Trade Representative Jamieson Greer said in a statement. “It’s well past time for our trading partners to do the same.”One senior administration official rejected the idea that Trump was imposing the new tariffs purely as a replacement to the earlier duties that were struck down, but also said the president would use all the tools at his disposal and won’t allow his trade policy to be undermined by a court decision.The official suggested the administration had planned to impose the forced-labor tariffs in any case and was rolling them out now to avoid upheaval for US businesses.The administration telegraphed the move last month, when it released the outcome of its forced-labor investigation. There will be some changes from the original proposal, according to a senior administration official who briefed reporters before the announcement was made. That inclides India securing a 10% levy instead of the original, threatened 12.5% level. Imports such as fuel, foods and fertilizers will be exempt from the new tariffs, as well as products such as automobiles, metals and drugs that are covered by separate, industry-specific levies. Items covered by the North American trade agreement with Mexico and Canada will also be excluded. The Trump administration has received numerous requests for thousands further exemptions, that official said. The plan will include global and country-specific exemptions based on commitments from existing deals Trump struck with foreign governments, according to the official. This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Greer is spearheading Trump’s redesigned trade policy, targeting unfair practices abroad using more legally tested statutes that require months of procedures and public engagement. The more deliberative approach stands in contrast to the immediacy and unpredictability of Trump’s tariff barrages through much of 2025.Still, that may not stop some importers from challenging the new duties in court. Saddling American importers with costs carries risks politically for Trump and his fellow Republicans, less than four months from midterm elections where the focus for Democrats is the elevated cost of living. That pressure is intensifying as the Iran war makes energy, food and other commodities more expensive.Blake Harden, a trade expert with the consultancy Ernst & Young, said Trump isn’t finished with tariffs or disrupting the status quo. “There’s still a lot of uncertainty hanging out there. We still have the opportunity for a lot of tariffs this year,” she said. “Prior to this week there was sort of just a bit of a lull and maybe it felt like there was more certainty than there is. There’s this thing I keep telling folks: There’s a lot to come still as we get into this year.”USTR proposed the latest duties following a probe under Section 301 of the Trade Act of 1974. That report recommended a 12.5% duty for countries deemed to lack laws that ban imports produced with forced labor. A 10% import tax was recommended for products from economies that have such bans in place but don’t sufficiently enforce them, or have committed to doing so.Countries from India and to Norway have pushed back against the allegations. In Canada, a bill introduced in June is designed to strengthen government’s “ability to identify, intercept and prohibit goods linked to forced labour at the border, while providing certainty and transparency for businesses operating in or trading with Canada,” according to a public filing in the case.The White House’s decision comes on the heels of a July 15 announcement that the US, also invoking Section 301, will begin charging importers a 25% tariff on imports of certain goods from Brazil following an investigation alleging that the country engaged in unfair trade practices.Explainer: Why Trump’s New Tariff Plan Focuses on Forced LaborThe raft of 301 investigations includes a review of US trading partners’ excess manufacturing capacity, though its unclear when the findings of that probe will be released, or whether any future duties from that investigation would be stacked on top of those proposed under the forced labor investigation.Greer said recently that the excess capacity probe is taking longer than the investigation into forced labor. “We’re trying to make sure that we’re actually living up to the letter of the law,” he said in an interview with Bloomberg Television last week.This week, Trump proposed tariffs on Canadian goods under a never-before-used trade authority — Section 338 — though those would only affect about 5% of US imports from its northern neighbor and would take effect Aug. 19 depending on how negotiations go.Complicating the rollout are several deals the Trump administration negotiated with economies including Japan, South Korea, the UK and the European Union. Greer has said Washington would abide by commitments made in those agreements.Earlier on Thursday, Greer lashed out at the EU in a statement, saying a European Commission announcement of a fine against Alphabet Inc.’s Google and a recent “state-backed” loan to Toulouse, France-based Airbus SE risk undermining transatlantic trade stability. Meanwhile, US Customs and Border Protection is currently issuing refunds on Trump’s so-called reciprocal tariffs that the high court ruled illegal in February. The recipients are thousands of American importers including Nike Inc., which said last month that it expects to recoup almost $1 billion.Still, “tariffs remain a dynamic cost headwind that we expect to continue looking forward,” said Matthew Friend, Nike’s chief financial officer, said during a conference call in late-June.—With assistance from Shawn Donnan.(Updates with details of decision from Federal Register notice.)Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.