Trump Threatens 10‑12.5% Tariffs on 60 Nations Over Forced Labour
Trump Announces Forced‑Labour Tariffs on 60 Allies
Donald Trump warned that the United States will levy tariffs of 10%–12.5% on goods from sixty trading partners, including the UK, the EU and Australia, accusing them of allowing forced‑labour in their supply chains. The proposal follows a February 2026 Supreme Court ruling that declared his earlier “liberation day” tariffs unlawful.
Scope and Mechanics of the Proposed Tariffs
The tariffs would be imposed under Section 301 of the Trade Act of 1974, based on a 98‑page investigation that identified forced‑labour violations in the majority of the targeted economies. While the measures are not slated to take effect immediately, they will be subject to a public comment period before any final rule is issued.
Tariff Rates and Affected Countries
- EU, Canada, Mexico, Taiwan, United Kingdom: 10% tariff
- China, Japan, India, South Korea, Brazil, Switzerland: 12.5% tariff
The report notes that only a handful of nations—Canada, Ecuador, the EU, Indonesia, Mexico, and Pakistan—have not yet imposed a forced‑labour import prohibition, yet the United States still deems them non‑compliant.
Political and Trade Fallout Across the Atlantic
The European Commission immediately rebuked the plan, emphasizing that the United States should honour the July 2025 tariff‑reduction agreement that capped duties at 15%. Jamieson Greer, the U.S. Trade Representative, framed the move as a response to “unacceptable” labour standards, while EU officials warned that such unilateral action “breaches the spirit” of existing trade deals.
What Comes Next for U.S. Trade Policy
Analysts predict that Trump will continue to explore alternative legal avenues—potentially the six additional routes he mentioned in February 2026—to circumvent the court’s constraints. If the tariffs proceed, they could reshape supply‑chain decisions for multinational firms and heighten geopolitical tensions ahead of the upcoming election cycle.