US announces new tariffs over forced labour concerns

June 3, 2026

The Trump administration has announced tariffs of 10-12. 5% on 60 countries that collectively represent nearly all US imports, claiming these nations inadequately address forced labor in their supply chains. This marks the second major tariff announcement since the Supreme Court invalidated Trump's earlier "Liberation Day" tariffs in February.

Who is affected

60 trading partners including the UK, EU, Canada, India, Japan, China, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Malaysia, Taiwan, Mexico, Pakistan, and Ecuador
American workers (according to US Trade Representative claims)
US businesses that import goods from these countries
Trading partners accounting for 99.4% of US imports

What action is being taken

The Trump administration is announcing (but not yet enforcing) tariffs of 10-12.5% on the 60 countries
The UK government is engaging regularly with the US administration as part of ongoing negotiations
The EU remains committed to implementing the trade deal agreed with the Trump administration last year
China is opposing the unilateral tariff measures

Why it matters

This action matters because it affects nearly all US imports and could significantly disrupt global trade relationships with major economic powers. The US government argues that competing with countries that allow forced-labor goods creates an unfair competitive disadvantage for American workers. The tariffs represent a continuation of Trump administration trade policy even after Supreme Court rejection of previous measures, demonstrating the administration's commitment to using tariffs as leverage on labor and human rights issues. The move also tests international trade relationships and legal frameworks, with implications for global supply chains and diplomatic relations between the US and its largest trading partners.

What's next

The Trump administration will need to go through a process to enforce the announced tariffs
The EU is on track to ensure implementation of Joint Statement tariff commitments by the end of June
The existing 10% temporary global tariff is due to expire in July unless extended by Congress
Trump and other officials have indicated the temporary 10% tariff will be raised to 15%
India is considering challenging the legal basis of the proposed tariffs and may reassess its participation in bilateral trade agreement negotiations

Read full article from source: BBC