New Trade Plan Targets Imports Over Forced Labor Concerns
The Trump administration has unveiled a proposal to impose new tariffs on dozens of major U.S. trading partners, including China, the European Union, Mexico, and Canada, citing concerns over forced labor practices.
The proposal, announced by U.S. Trade Representative Jamieson Greer’s office, would use Section 301 of the Trade Act of 1974 to levy tariffs of up to 12.5% on imports from countries accused of failing to prohibit or enforce bans on goods made with forced labor.
Countries Could Face Tariffs Up to 12.5%
Under the plan:
- China, the United Kingdom, Japan, Brazil, and several other nations could face tariffs of up to 12.5%.
- Mexico, Canada, and the European Union could see additional 10% tariffs.
According to the report, the proposed measures would affect approximately 99% of U.S. imports.
Public Hearing Scheduled for July
The tariffs are not yet in effect. The USTR has scheduled a public hearing for July 7, 2026, before any final decision is made.
The proposal follows a February Supreme Court ruling that blocked the administration from using emergency powers to impose broad global tariffs. In response, officials launched new trade investigations in March under Section 301 authority.
Economic Impact Remains a Concern
While many Trump-era tariffs remain in place, economists note that U.S. tariff rates are already at their highest levels since the 1940s. Analysts at the Yale Budget Lab estimate current tariff policies could increase costs for the average American household by as much as $1,200 annually.
Greer said the administration is carefully reviewing trade relationships worldwide as it seeks to reshape the terms of international commerce.
“We’re trying to go very carefully to change the terms of trade between the United States and the rest of the world,” Greer said during a CNBC interview.
What Happens Next?
The proposed tariffs face a public review process before implementation. If approved, they could significantly expand U.S. trade restrictions and affect imports from many of America’s largest economic partners.
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