The Trump administration on Friday will impose new tariffs of 10 percent and 12.5 percent on 60 trading partners, including India and the European Union, over allegations of lax enforcement of forced labor bans. The announcement came just as a temporary 10 percent global tariff expires.
Goods from countries that have passed adequate anti-forced labour laws will be levied at the , and imports from those with inadequate bans will be subject to the higher 12.5 percent rate. Recent actions and legislation by some countries, including India, moved them to the 10 percent tariff rate since the duties were first proposed.
Which are the 60 countries on 10% and 12.5% tariff list?
The are:
Quick answers to key questions
Which countries are affected by the new US tariffs on forced labor?⌵
The US tariffs affect 60 countries, including India, Canada, China, and the European Union, with rates of 10% for some and 12.5% for others based on their enforcement of forced labor bans.
What criteria did the US use to determine the tariff rates for the 60 economies?⌵
The US determined tariff rates based on whether countries have effective forced labor import prohibitions. Those with adequate laws face a 10% rate, while those with inadequate measures are charged 12.5%.
Why did the US impose tariffs on countries regarding forced labor?⌵
The US imposed tariffs to address inadequate enforcement of bans on importing goods produced with forced labor, aiming to encourage better compliance among these countries.
How does Section 301 of the Trade Act relate to the new tariffs?⌵
Section 301 of the Trade Act allows the US to impose tariffs on countries found to engage in unfair trade practices, including the failure to prohibit forced labor imports effectively.
Should businesses be concerned about these new tariffs on imports?⌵
Yes, businesses should be concerned as these tariffs will impact the cost of imported goods from affected countries, potentially leading to higher prices for consumers and disruptions in supply chains.
1. Algeria
2. Angola
3. Argentina
4. Australia
5. The Bahamas
6. Bahrain
7. Bangladesh
8. Brazil
9. Cambodia
10. Canada
11. Chile
12. China, People’s Republic of
13. Colombia
14. Costa Rica
15. Dominican Republic
16. Ecuador
17. Egypt
18. El Salvador
19. European Union
20. Guatemala
21. Guyana
22. Honduras
23. Hong Kong, China
24. India
25. Indonesia
26. Iraq
27. Israel
28. Japan
29. Jordan
30. Kazakhstan
31. Kuwait
32. Libya
33. Malaysia
34. Mexico
35. Morocco
36. New Zealand
37. Nicaragua
38. Nigeria
39. Norway
40. Oman
41. Pakistan
42. Peru
43. Philippines
44. Qatar
45. Russia
46. Saudi Arabia
47. Singapore
48. South Africa
49. South Korea
50. Sri Lanka
51. Switzerland
52. Taiwan
53. Thailand
54. Trinidad and Tobago
55. Türkiye
56. United Arab Emirates
57. United Kingdom
58. Uruguay
59. Venezuela
60. Vietnam
As per the White House press release, the Trade Representative proposed tariffs of 10 percent ad valorem on goods of economies that:
1. Impose a forced labour import prohibition but do not yet effectively enforce it. They are:
>Canada
>Ecuador
>the European Union
>Indonesia
>Mexico
>Pakistan
2. Have undertaken commitments in their respective Agreements on Reciprocal Trade regarding forced labour import prohibitions:
>Argentina
>Bangladesh
>Cambodia
>Ecuador
>El Salvador
>Guatemala
>Indonesia
>Malaysia
>Taiwan
3. Have imposed a partial regime with the effect of preventing the importation of certain forced labor goods:
> The United Kingdom
The White House said additional economies that have:
1. Either imposed forced labour import prohibitions include:
Cambodia
Guatemala
Honduras
India
Sri Lanka
Trinidad and Tobago)
2. Or have undertaken commitments regarding forced labor import prohibitions in an Agreement on Reciprocal Trade
> Jordan
“As a result of these actions, the Trade Representative has advised me that the goods of these economies should be tariffed at the 10 percent rate to further encourage these economies to effectively enforce such prohibitions, and, in the case of Jordan, to enact and effectively enforce its commitments regarding forced labor import prohibitions,” the White House says.
Most of the trading partners will face 12.5% tariffs, but a lower 10% rate will apply to 17 countries that have some prohibitions on forced labour. Five other trading partners — including the European Union — will face some additional levy to get their total to either 10% or 12.5%.
So, 10 percent tariff rate will apply to 17 countries:
Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, the United Kingdom, and Trinidad and Tobago.
12.5 percent tariff rate will apply to the rest:
“For all other economies whose failure to impose forced labor import prohibitions the Trade Representative has found actionable under section 301, the Trade Representative proposed section 301 tariffs of 12.5 percent ad valorem,” the White House said.
They include China, Japan, South Korea, Brazil, Switzerland, and Vietnam.
