US Imposes New Tariffs on 60 Trade Partners Including Israel Over Forced Labor Concerns

The United States has imposed new tariffs ranging from 10% to 12.5% on imports from 60 trade partners, including the European Union, China, and Israel, citing efforts to combat forced labor. These tariffs took effect overnight after the expiration of temporary 10% tariffs introduced earlier this year following a Supreme Court ruling that invalidated most of former President Trump's tariff program. The new tariffs, authorized under Section 301 of the Trade Act of 1974, cover 99.4% of US imports but exclude many products such as oil, gas, and fertilizers.

Countries like Argentina, Bangladesh, Canada, India, Mexico, and others face 10% tariffs, while the EU, Taiwan, Japan, South Korea, and Switzerland have combined tariffs totaling 10% or 12.5% when including existing Most Favored Nation (MFN) rates. Israel and 37 other countries, including Vietnam and China, are subject to a 12.5% tariff rate. The US accuses China of using forced labor camps for minorities like the Uyghurs, a claim Beijing denies. Vietnam recently enacted detailed rules banning imports produced by forced labor.

US Trade Representative Jamison Greer emphasized the longstanding US ban on forced labor imports and the need for trade partners to enforce similar standards, stating the move aims to address human rights abuses and unfair trade practices to improve workers' welfare globally. The previous temporary tariffs expired at 12:01 a.m. Eastern Time on Friday, with goods already in transit exempt until July 28.

Brazil condemned the tariffs as arbitrary and unjustified, with President Luiz Inácio Lula da Silva open to negotiations but warning Brazil would seek alternative markets if US sales are blocked. Brazil faces an additional 25% tariff under a separate Section 301 measure, bringing its total to 37.5%. Chile also criticized the move as inconsistent with its labor standards and plans to seek exemptions for key exports, noting the US does not accuse Chile of forced labor exports.