The United States will slap tariffs of 10% to 12.5% on imports from 60 trading partners, charging that they have inadequately enforced bans on goods produced by forced labor.
“The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same,” said U.S. Trade Representative Jamieson Greer.
The move, announced Thursday, extended the administration’s tariffs on much of the world.
Five trading partners – the European Union, Taiwan, Japan, Korea, and Switzerland – are facing a tariff rate of either 10% or 12.5%.
A lower 10% rate applies to 17 countries (i.e. Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom).
The rest of the trading partners are facing 12.5% tariffs: this applies to all other investigated economies.
US president Donald Trump vowed to reinstate his tariffs through other legal routes, arguing the levies are necessary to revive U.S. manufacturing and prevent what he views as unfair trade practices by other countries. Many economists warn tariffs can lead to higher consumer prices and more sluggish economic growth.
The latest threats reinforce the view that the Trump administration is going to keep tariffs in its toolbox to enforce trade pacts.
Companies are more perturbed as the tariff uncertainty they had hoped would subside has bled into this year, clouding investment and strategic decisions.
The action drew stronger protests from some trade partners. China, which has been hit with a 12.5% tariff, said it opposed all unilateral tariffs, adding that trade wars did not serve any parties.
The British Chambers of Commerce described the new tariffs as a mixed picture for UK exporters. For most UK companies there is no effective change, but there is welcome confirmation that the removal of US tariffs on whisky has taken effect.
For steel and aluminium goods, the UK keeps its comparative advantage with the US, as it faces duties of 25%, compared with 50% for many other countries, according to the British Chambers of Commerce.
On pharmaceuticals and automotives, the British Chambers of Commerce said UK also has a strong position as none of those tariff arrangements have changed.
However, in other sectors, businesses will be concerned about their competitiveness – as imports of goods from other countries have been treated differently.
