Trump Administration Readies New Tariffs Targeting Forced Labour, Sparking Global Trade Tensions

The United States government is preparing to impose a fresh wave of import tariffs that could strike dozens of trading partners, as a temporary global duty is set to expire this week. The new levies, specifically targeting nations deemed to be failing to take sufficient action against forced labour, are expected to affect around 60 countries. US Trade Representative Jamieson Greer signalled that the penalties, ranging from 10% to 12.5%, would replace the existing 10% global tariff and cover the majority of America’s foreign trade. “We anticipate seeing some action soon,” Greer stated regarding the timing of the new measures.

The move has already heightened international trade tensions, with Washington separately confirming a 25% tariff on Brazilian products and a 50% levy on Canadian goods. The US justifies the actions by citing unfair trade practices and a lack of enforcement against forced labour, arguing that many nations either lack such laws or fail to implement them. However, the European Union has previously dismissed the forced labour rationale as baseless.

In Canada, Prime Minister Mark Carney indicated that all options are being considered in response to the 50% tariff, which legal experts suggest is a pressure tactic linked to the renegotiation of the US-Mexico-Canada Agreement (USMCA). The US administration has refused to extend the current trade pact, and the new penalties notably do not exempt Canadian products previously protected under the USMCA. Meanwhile, the American Chamber of Commerce for Brazil warned that the 25% tariff on Brazilian goods places the country among those facing the most restrictive access to the US market, threatening over US$11 billion (Rp198 trillion) in exports. The escalating trade measures are expected to become a major political issue in Brazil ahead of its upcoming presidential election.