Trump administration moves to impose new global tariffs
The Trump administration proposed additional tariffs of 10% or 12.5% on imports from 60 economies, including the European Union, on Tuesday, June 2. The US Trade Representative (USTR) found these nations fail to effectively combat trade in goods produced with forced labor, Reuters reported. The proposal remains subject to public consultation and has not yet taken effect.
According to the official USTR statement, only six economies qualify for the lower 10% rate: Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan. These jurisdictions have anti-forced labor measures in place but fail to enforce them effectively.
The remaining 54 investigated economies face a 12.5% surcharge. This group includes major trading partners such as China, Japan, India, South Korea, Switzerland, and the United Kingdom.
Trade official condemns enforcement failures
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” stated US Trade Representative Jamieson Greer, as cited by Reuters.
Greer added that this situation forces American workers to compete globally on an unlevel playing field.
Exemptions and timeline
The proposed measures include a specific mechanism for the textile sector. This framework allows a set volume of apparel and textile imports to enter the US at a reduced tariff rate, though specific volumes and duties remain unannounced.
Several product categories remain completely exempt from the new duties. These exceptions encompass energy, rare earths, specific metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals, and aircraft components.
The public consultation window remains open until July 6, with a formal hearing scheduled for July 7. Just one day prior, on Monday, the USTR separately proposed a 25% tariff on numerous Brazilian products following a distinct Section 301 investigation.
Legal background and diplomatic friction
The proposal emerges from an investigation under Section 301 of the Trade Act of 1974. It marks a broader effort by the Trump administration to rebuild its tariff regime following recent judicial pushback.
In February, the US Supreme Court ruled that President Donald Trump exceeded his authority by imposing global tariffs under the International Emergency Economic Powers Act (IEEPA). The administration temporarily replaced those duties with a 10% surcharge under Section 122, a mechanism capped at 15% for a maximum of 150 days, which expires on July 24. Consequently, the newly proposed Section 301 tariffs aim to secure a more durable legal foundation that bypasses court-imposed limits.
For the European Union, the timing proves highly sensitive. Only two weeks ago, Brussels approved an agreement with Washington capping tariffs on most European exports at 15%, following intense debates among the 27 member states and threats from MEPs to block the text. The new 10% forced labor surcharge now directly threatens the stability of that bilateral accord.
Translation by Iurie Tataru
