Tariffs: US proposes new duties on 60 countries over forced labour

The United States has proposed new tariffs targeting imports from some 60 trading partners, citing concerns that those countries have not adequately prevented goods made with forced labour from entering global supply chains. The proposal outlines additional levies generally in the 10% to 12.5% range and is presented as part of a wider effort to address labour-related trade risks.

Officials said the process is being overseen by the U.S. Trade Representative (USTR), which opened investigations and published the proposed rates and affected product categories. The announcement follows a February 20, 2026 decision by the U.S. Supreme Court that invalidated an earlier, broader set of tariffs imposed under emergency powers; the administration is seeking alternative legal tools to pursue similar policy goals.

Market and diplomatic reactions were quick: several trade partners voiced objections, arguing the measures are inconsistent with existing agreements and could raise costs for consumers and businesses. Some exporting industries in the U.S. signalled support for protective measures, while import-dependent firms warned of higher input prices. Observers noted potential near-term price pressure on consumer goods and increased supply-chain reconfiguration.

The move should be seen in the broader context of the administration’s attempt to reconstitute a tariff toolkit after the Supreme Court curtailed emergency-based tariffs. Officials are using statutes such as Section 301 of the Trade Act of 1974 to pursue investigations that could justify targeted duties, signalling a longer legal and diplomatic process ahead. A temporary 10% global surcharge imposed earlier is set to expire on July 24, 2026, adding urgency to the administration’s efforts to finalize more durable measures.

Analysts say outcome uncertainty is the key risk for markets: until the USTR finalises findings and specific product lists, businesses must model scenarios for higher import costs and potential shifts in supplier strategies. If implemented, the tariffs could prompt diversification of sourcing, renegotiation of contracts and, depending on scale, measurable effects on trade balances and inflationary pressures. Market participants will watch subsequent investigations, consultations and any retaliatory steps by trading partners closely.