What is the new tariff rate on forced labour goods?

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New Tariffs on Forced Labour Goods Range from 10 to 12.5 Per Cent

The United States is implementing new tariffs on approximately 60 trading partners, with rates ranging from 10 per cent to 12.5 per cent, aimed at addressing concerns over forced labour. These levies are effective immediately and replace an expiring global duty. The specific rate applied depends on whether a trading partner has implemented or committed to implementing a prohibition on imports produced by forced labour.
Lower Tariffs for Countries with Forced Labour Import Bans

Nations that have established or pledged to establish a ban on imports produced through forced labour will face the lower tariff rate of 10 per cent. This category includes major economies such as Canada, the European Union, India, and the United Kingdom. This tiered approach incentivises countries to adopt policies against forced labour by offering a reduced tariff burden.
Higher Tariffs for Nations Not Meeting Labour Standards

A higher tariff rate of 12.5 per cent will be imposed on countries deemed not to meet these forced labour import prohibition standards. This group includes significant trading partners like China, Japan, and South Korea, along with numerous other nations. The decision to apply this higher rate suggests these economies are perceived as not having sufficiently addressed forced labour in their trade practices.
Exemptions and Sector-Specific Considerations

Certain goods and trade agreements are exempt from these new tariffs. Specifically, goods already subject to sector-specific tariffs, such as steel and aluminium, will not be affected. Additionally, some energy products and fertilisers are exempt, as are goods covered under the US-Mexico-Canada free trade agreement. The European Union, Taiwan, Japan, South Korea, and Switzerland also receive some tariff relief, aligning with previously established trade pacts with the United States.

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What is the new tariff rate on forced labour goods?

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