Donald Trump has threatened to impose tariffs of between 10% and 12.5% on 60 trading partners, including the UK, the EU, and Australia, citing alleged failures to address forced labour. The move is seen as an attempt to circumvent court-imposed limits on his tariff powers after the US Supreme Court ruled his earlier 'liberation day' tariffs illegal in February.
The proposed levies, based on investigations under Section 301 of the Trade Act of 1974, would affect major partners such as Canada, Japan, Norway, Taiwan, and China. The US Trade Representative, Jamieson Greer, stated that the failure of trading partners to address forced labour imports creates an unfair playing field for American workers.
The EU immediately criticised the plan, arguing it breaches the spirit of the tariff deal agreed in July. The European Commission said it 'fully shares' US concerns about forced labour but considers the tariffs unjustified, and expects the US to respect the existing agreement.
The UK government responded by highlighting its Modern Slavery Act and ongoing engagement with the US administration. A spokesperson confirmed that the current preferential access for UK businesses remains unchanged, and there is no immediate change to the UK's tariff rate.
The tariffs would not take effect immediately and are subject to public comment and review. Experts note that Trump has long sought alternative legal routes to impose tariffs, and this latest proposal could further unsettle trading partners who have worked to build trust with his administration.
