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Thursday, June 4, 2026
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US Proposes New Tariffs Over Forced Labour Concerns

by Daisy Mae D.
06/04/2026
in Tariffs & Duties

The United States has proposed new tariffs ranging from 10% to 12.5% on imports from 60 trading partners, citing concerns that these countries have not taken sufficient action to prevent goods linked to forced labour from entering their supply chains.

According to the US Trade Department, the proposed measures follow an investigation launched in March into whether major trading partners had effectively prohibited and enforced restrictions on imports produced wholly or partly through forced labour.

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The report concluded that 54 countries had failed to establish and enforce adequate legal prohibitions on such imports, while six others — Canada, the European Union, Ecuador, Indonesia, Mexico and Pakistan — were found to have enforcement shortcomings.

Under the proposal, imports from countries including the UK, Canada, the EU, Mexico, Malaysia, Taiwan, Bangladesh and Cambodia would face a 10% tariff. A higher rate of 12.5% would apply to the remaining countries on the list, including China, India and Japan.

US Trade Representative Jamieson Greer said the measures are intended to address concerns that American workers face unfair competition when goods linked to forced labour enter global markets.

The tariffs have not yet been implemented and would need to undergo a formal process before taking effect.

Several countries responded to the announcement. The UK said it is taking steps to address forced labour risks within domestic and international supply chains. China rejected allegations that goods produced with forced labour are entering global markets and opposed the use of unilateral tariffs. The European Commission described the proposed measures as unjustified and reaffirmed its commitment to ongoing trade cooperation with the US.

Human rights organisations acknowledged that forced labour remains a concern in some global supply chains but questioned whether tariffs alone are the most effective solution. They argued that stronger enforcement measures, corporate accountability and mandatory human rights due diligence are also necessary.

In India, trade analyst Ajay Srivastava described the proposal as part of broader trade pressure tactics and suggested it should remain separate from ongoing trade discussions between the two countries.

The proposed tariffs mark the second major tariff announcement by the current US administration since a Supreme Court ruling earlier this year invalidated several previously imposed import duties.

The temporary global tariff measures currently in place remain at 10% and are scheduled to expire in July unless extended by Congress.

#SupplyChainNews #TradePolicy #GlobalTrade #ForcedLabour #InternationalBusiness

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