Trump Proposes Tariffs on 60 Nations Over Forced Labor

The United States Trade Representative (USTR) proposed additional tariffs of 10% to 12.5% on 60 economies on June 2, 2026, following a Section 301 investigation into forced labor practices. The proposal targets nations that failed to effectively prohibit or enforce bans on goods produced with forced labor, which the USTR claims creates an unlevel playing field for American workers. A higher 12.5% rate is proposed for 54 economies, including China, India, and Australia, while a lower 10% rate is proposed for countries like Canada, Mexico, and the European Union, which have existing prohibitions but fail to enforce them effectively.

These measures aim to replace temporary tariffs and recover federal revenue after the Supreme Court of the United States struck down previous levies imposed under the International Emergency Economic Powers Act in February. To mitigate domestic inflation, the administration included exemptions for aircraft parts, rare earth minerals, and staples like beef and coffee.

Responses from affected nations have been overwhelmingly critical. Australia's Prime Minister Anthony Albanese and the European Commission called the tariffs unjustified and inconsistent with free trade agreements. China denied all forced labor allegations, describing the move as political manipulation. In response to the threat, Canadian Prime Minister Mark Carney announced new legislation to strengthen supply chain protections against forced and child labor. Other nations, including India, Sri Lanka, and Taiwan, are engaging in diplomatic negotiations or establishing new review mechanisms to avoid the duties. Public comments are open until July 6, with hearings scheduled for July 7, before the tariffs potentially take effect on July 24.