Starting today, Friday July 24, the new tariffs decided by the United States, ranging between 10% and 12.5%, take effect on more than 60 trading partners, as part of a new series of duties that, in the Trump administration's plans, aim to combat alleged forced labor. The measures, released by the Office of the US Trade Representative, Jamieson Greer, are intended to replace the temporary global 10% tariffs introduced by Trump, which expire on Friday, after the Supreme Court had struck down most of the global tariffs imposed by the tycoon in February.
The move is the result of a wide-ranging investigation that, according to the Financial Times' account, involves major US trading partners such as Japan, South Korea, India and Canada, as well as the EU and the United Kingdom. China and Brazil also figure in the investigation.
The new measures affect, according to Greer's office, more than 99% of American trade: countries with laws against forced labor have been subject to a 10% tariff, while those without such laws have been charged an additional 2.5%, bringing their rate to 12.5%.
They will take effect at the same moment the temporary tariffs expire. Goods already subject to specific national security-related tariffs, including steel, aluminum, automobiles and related components, will not be affected by the new measures, which are based on a frequently used provision of trade law — Section 301 of the Trade Act of 1974 — considered legally more robust than the legal basis of the tariffs struck down by the Supreme Court. Exemptions also apply to oil, gas and fertilizers, as well as other goods that the United States does not produce.
Countries that make progress in combating forced labor could see tariffs drop to 10%. As in the case of India, for example, which was "rewarded" with 10% after passing an anti-forced labor law that corrected the initially planned 12.5%. Currently, however, the United States does not consider the countries under investigation to be adequately protecting workers, regardless of whether laws on the matter exist: findings that are set to create a new legal storm.
The Trump administration's move, according to observers, actually has the objective of rebuilding the tycoon's global tariff regime from Liberation Day, demolished by the Supreme Court ruling. And it comes after a new wave of 50% tariffs on certain Canadian goods, and last week the administration imposed a 25% tariff on many Brazilian products. Jamieson Greer, the US Trade Representative, stated that the forced labor tariffs "will restore fairness in the global market for American workers" and will push US trading partners to "join the United States in eliminating forced labor from global supply chains."
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