Trump imposes new tariffs on dozens of US trading partners

Trump administration finalised new tariffs on dozens of US trading partners, introducing duties ranging from 10% to 12.5% as a temporary global tariff is set to expire.

The measures, announced on Thursday, follow a five-month investigation into whether trading partners have taken sufficient steps to eliminate forced labour from their supply chains.

New tariffs take effect from Friday

Beginning Friday, 17 trading partners, including Canada, the European Union, the United Kingdom, Mexico and Indonesia, will face a 10% tariff.

Another 10 countries that signed trade agreements with the US addressing forced labour will also receive the 10% rate.

Meanwhile, 43 countries, including China, Japan, South Korea and Australia, will be subject to a 12.5% tariff.

According to the administration, the new rates are consistent with preliminary findings released in June.

Administration cites forced labour concerns

A senior administration official described the move as the most significant international labour rights action ever taken by the United States.

The official said the tariffs are intended to encourage stronger labour rights enforcement abroad, promote fairer competition for American workers and push trading partners to eliminate forced labour from global supply chains.

Some countries, including India, Honduras, Sri Lanka and Trinidad and Tobago, secured lower tariff rates after implementing forced labour bans following the initial proposal.

Exemptions remain for selected products

The administration retained exemptions for several categories of goods, including coffee and products covered under the 2020 North American trade agreement.

Additional exemptions were introduced for products that cannot be produced domestically, including cork and certain precious gemstones such as diamonds and rubies.

More trade investigations underway

The new duties were imposed under Section 301 of the Trade Act of 1974 following the Supreme Court's decision earlier this year to strike down Trump's previous reciprocal tariffs.

The Office of the US Trade Representative is continuing several other Section 301 investigations that could lead to additional tariffs on countries including China, the European Union, Japan, India, South Korea, Vietnam and Mexico.

Officials also confirmed investigations into manufacturing overcapacity and Germany's pharmaceutical pricing practices remain active, with further trade actions possible in the coming months.