US imposes forced labor tariffs on 60 economies: Which countries will pay 10% and 12.5% tariffs? | Today’s news
The Trump administration will impose new tariffs of 10 percent and 12.5 percent on 60 trading partners, including India and the European Union, on Friday over allegations of lax enforcement of forced labor bans. The announcement comes just as the temporary 10 percent global tariff is set to expire.
Goods from countries that have adopted adequate laws against forced labor will be subject to a lower rate of 10 percent, and imports from countries with insufficient bans will be subject to a higher rate of 12.5 percent. Recent actions and legislation by some countries, including India, have moved them toward a 10 percent tariff since the tariffs were first proposed.
Which 60 countries are on the 10% and 12.5% tariff list?
The 60 economies subject to US forced labor tariffs include:
12. China, People’s Republic
The trade representative proposed the tariffs, according to a White House press release 10 percent ad valorem on goods of economies which:
1. Introduce a ban on the import of forced labour, but not yet effectively enforce it. They are:
2. In their respective mutual trade agreements, they have made commitments regarding prohibitions on the importation of forced labour:
3. They introduced a partial regime to prevent the importation of certain forced labor goods:
The White House said other economies have:
1. Both imposed bans on the importation of forced labor include:
2. Or they have made commitments on forced labor import bans in a mutual trade agreement
“As a result of these actions, the Trade Representative has recommended to me that goods from these economies be subject to a 10 percent tariff to further encourage these economies to effectively enforce such bans and, in the case of Jordan, to enact and effectively enforce its obligations regarding forced labor import bans,” the White House said.
Most trading partners will face 12.5% tariffs, but a lower 10% rate will apply to 17 countries that have some sort of ban on forced labour. Five other trading partners – including the European Union – will face additional charges to bring their overall MFN tariff rate to either 10% or 12.5%.
So the 10 percent tariff will apply to 17 countries:
Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, United Kingdom and Trinidad and Tobago.
The rest will be subject to a 12.5 percent duty rate:
“For all other economies whose failure to impose a ban on the import of forced labor was found by the Trade Representative to be a Section 301 lawsuit, the Trade Representative proposed a Section 301 tariff of 12.5 percent ad valorem,” the White House said.
These include China, Japan, South Korea, Brazil, Switzerland and Vietnam.
