U.S. proposes tariffs over forced-labour imports affecting 60 countries, including Canada
U.S. proposes tariffs over forced-labour imports from 60 countries, including Canada; public comments close July 6 and hearings begin July 7 in Washington.
The United States Trade Representative on Tuesday proposed new additional tariffs on imports from about 60 countries, citing insufficient measures to stop goods made with forced labour. The proposal, framed as a way to reinstate surtaxes invalidated by a Supreme Court ruling, would levy rates ranging from 10% to 12.5% depending on each country’s legal and enforcement stance. Canada, Mexico, China, the European Union, Japan and India are among the economies named in the USTR’s draft plan, which opens a formal comment period and public hearings.
U.S. proposal affects 60 trading partners
The USTR’s preliminary determination identifies roughly 45 countries as having failed to implement effective bans on forced-labour imports and would subject them to a 12.5% tariff. Other economies judged to have partial or inadequately enforced prohibitions would face a reduced 10% rate. The proposal treats countries that have committed to adopt prohibitions and reached reciprocal arrangements with the United States differently, signaling a mix of pressure and selective accommodation.
USTR spokesman Jamieson Greer framed the package as a response to what the office calls unacceptable levels of forced-labour risk in global supply chains. The announcement follows investigations opened in March aimed at finding a new legal route to reimpose tariffs that a U.S. court decision had removed.
Proposed tariff rates and product coverage
Under the draft plan, most affected countries would face either a 12.5% or 10% ad valorem surcharge on a broad basket of goods. The USTR says the higher 12.5% rate targets economies deemed to lack both legal prohibitions and credible enforcement mechanisms. The 10% rate is proposed for those with partial measures, committed reforms, or reciprocal agreements with the United States.
The USTR’s document also specifies a list of product exclusions intended to limit disruption to critical industries and supply chains. Notably, exemptions would cover items such as semiconductors, beef, coffee and certain fruits, reflecting industry lobbying and concerns about immediate economic fallout.
Legal groundwork after Supreme Court ruling
The move is explicitly linked to a February Supreme Court decision that found the extraneous legal authority previously used to impose surtaxes did not permit a president to enact such tariffs unilaterally. Following that ruling, the administration temporarily reintroduced a 10% duty, but a longer-term mechanism is required before the temporary measure expires on July 24. The March probes were launched to identify an alternative statutory basis under U.S. trade law for renewed duties.
USTR officials say the current proposal leans on a 1974 trade statute to provide a firmer legal foundation. The agency’s approach aims to withstand judicial scrutiny and to respond to congressional concerns that tariff impositions remain within lawful executive authority.
Exemptions for semiconductors, food and USMCA-compliant goods
The draft excludes a wide set of products from the surtaxes to reduce downstream disruption and protect critical supply chains. Semiconductors, certain agricultural products and other specified items would be spared, according to the USTR summary. These carve-outs reflect both economic priorities and intense lobbying from affected sectors.
Goods from Canada and Mexico that comply with the United States–Mexico–Canada Agreement (USMCA) would also be exempted, the proposal notes, reducing the immediate impact on North American trade flows. USTR officials emphasize that these exemptions seek balance between addressing forced-labour risks and preserving essential commercial links.
Public comment period and next steps in Washington
The USTR has opened a public comment period through July 6 and scheduled public hearings beginning July 7 in Washington, allowing industry groups, foreign governments and civil-society organizations to present views. Those consultations are meant to inform a final determination and any adjustments to tariff lists, rates and product exemptions. The agency also proposes a mechanism to grant reduced tariffs for a defined volume of textile and apparel imports.
After the hearings and comment window close, the USTR will review submissions before issuing a final decision. Any finalized tariffs would need to fit within the legal constraints identified by the Supreme Court and withstand potential legal challenges from trade partners and affected industries.
The proposed U.S. tariffs over forced-labour imports raise immediate questions for Canadian exporters and supply-chain managers, but the planned exemptions for USMCA-compliant goods and selected product carve-outs reduce the likelihood of broad, immediate disruption. Canadian officials and industry groups are expected to engage during the comment period and at the Washington hearings to press for further exemptions and clarifications.
