Trump to impose ‘forced labour’ duties as temporary tariffs expire: India to face 10%, China 12.5% tariffs

The Trump administration will impose new tariffs of 10 per cent and 12.5 per cent on imports from 60 trading partners starting Friday. The move comes as the US believes these countries have failed to enforce bans on goods made with forced labour. These new duties will replace a temporary 10 per cent global tariff that was imposed earlier this year and is set to expire.

The tariffs will cover 99.4 per cent of US imports, although certain products such as oil and gas, fertiliser, and some food items will be exempt.

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Under the new tariffs, a 10 per cent duty will apply to goods from countries including Argentina, Bangladesh, Britain, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, and Trinidad and Tobago.

The European Union, Taiwan, Japan, South Korea, and Switzerland will face combined tariff rates of either 10 per cent or 12.5 per cent, when added to existing most-favoured-nation tariffs. The remaining 38 countries, including China, will be subject to a 12.5 per cent tariff.

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This step is part of the White House's effort to maintain President Donald Trump's broader tariff strategy. Earlier this year, the US Supreme Court struck down Trump's "reciprocal" tariffs, which ranged from 10% to 50%, imposed under a national emergencies law. Following the ruling, Trump introduced a temporary 10% tariff for 150 days, which expires at 12:01 a.m. EDT on Friday. 

Goods already in transit will remain exempt until July 28.

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US Trade Representative Jamieson Greer said the United States has enforced a forced labour import ban for nearly a century and urged trading partners to do the same. He described the tariffs as a measure to address human rights abuses and unfair trade practices. Greer also noted that countries with existing trade agreements that limit US tariff rates will not see those limits exceeded by the new forced labour duties.

The announcement faced criticism from several countries. Norway stated there was no basis for the tariff as it already has rules to prevent trade in goods made with forced labour. Australia and Brazil called the measures unjustified and said they would seek their removal. Canada said it would continue discussions with the United States on the matter.