The United States has proposed sweeping new tariffs of up to 12.5 percent on imports from 60 economies over what it says is the failure to ban or effectively enforce restrictions on goods linked to forced labour, in a move that could reshape global trade flows.
The proposal, announced by the Office of the U.S. Trade Representative (USTR), was made under Section 301 of the Trade Act of 1974 and targets economies including major trading partners such as China, the European Union and Japan.
The plan introduces a tiered tariff structure, with a 10 percent duty for economies that have partially or fully prohibited imports linked to forced labour, and a 12.5 percent tariff for all other economies deemed non-compliant.
The USTR said the measures are intended to address what it described as an “unlevel playing field” that disadvantages American workers and allows unfair competition from goods produced under forced labour conditions.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” U.S. Trade Representative Jamieson Greer said. “We will no longer tolerate this disparity.”
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The proposal marks one of the most significant trade policy actions under the current administration, which has been seeking to reassert country-specific tariff measures after previous legal setbacks that struck down parts of earlier tariff programmes.
The move comes after the U.S. Supreme Court invalidated most of former President Donald Trump’s “Liberation Day” tariffs earlier this year, prompting the administration to rely on alternative legal mechanisms, including temporary global baseline duties under Section 122.
The Section 301 framework allows the U.S. government to impose trade penalties in response to unfair foreign trade practices that harm domestic industries.
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Analysts say the new tariff proposal could significantly alter global supply chains if implemented, although its final form may be adjusted after consultations and hearings.
Written comments on the proposal are due by July 6, with public hearings scheduled for July 7, according to the USTR notice.
Economists say the eventual impact will depend on exemptions and sector-specific carve-outs, particularly for sensitive industries such as electronics and artificial intelligence-related products, which are expected to face softer treatment.
Some analysts also expect significant lobbying from affected countries and multinational companies, which could lead to revisions before final implementation.
The proposal adds to rising global trade tensions, with Washington increasingly using trade policy as a tool to enforce labour, environmental and geopolitical standards across supply chains.
In a parallel development, the U.S. government has also begun soliciting public input on the creation of a new U.S.-China Board of Trade, an initiative agreed during recent bilateral talks aimed at easing tariff pressures between the world’s two largest economies.
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The proposed body could eventually lead to mutual tariff reductions, although details remain under discussion.
Trade experts say the simultaneous push for new punitive tariffs and potential bilateral easing reflects Washington’s broader strategy of applying pressure while keeping channels open for negotiated adjustments.
Deborah Elms of the Hinrich Foundation said the measures could “reshape global supply chains” by creating new economic incentives for firms to reassess sourcing and production locations.
However, she noted that the final impact would depend on how widely exemptions are applied and how trading partners respond.
While China and other major economies are expected to weigh their responses carefully, analysts suggest immediate retaliation may be limited, though tensions could escalate if additional tariff rounds follow.
The proposal underscores a renewed phase of trade friction as the U.S. seeks to tighten enforcement on labour-linked imports while simultaneously exploring avenues for negotiated tariff reductions with key partners.
