The Trump administration on Friday will impose new tariffs of 10 percent and 12.5 percent on 60 trading partners, including China, over allegations of lax enforcement of forced labour bans, just as a temporary 10 percent global tariff expires, senior administration officials said on Thursday.

The move is the White House's latest effort to restore US President Donald Trump's campaign vision of a near-global tariff after the US Supreme Court in February struck down his "reciprocal" duties of 10 percent to 50 percent imposed last year under a national emergencies law to try to shrink the US trade deficit.

Trump responded to that ruling by imposing a temporary 10 percent tariff for 150 days that expires at 12.01 pm Hong Kong time on Friday, invoking Section 122 of the Trade Act of 1974, a law meant to quell balance of payments crises.

The new duties will take effect at that exact same moment, with goods in transit exempted until 12.01 pm Hong Kong time on July 28.

Under Thursday's announcement, economies that have implemented a forced labour import prohibition or committed to do so are hit with the lower 10-percent rate. They include Canada, the EU, India and the United Kingdom.

China, Japan, South Korea and dozens of others were deemed to deserve the higher 12.5 percent tariff.

But the EU, Japan, South Korea and Switzerland receive some relief, aligning with trade pacts they previously reached with the United States.

Goods already facing sector-specific tariffs – like steel and aluminium – will not be impacted. Certain energy products and fertilisers will be exempt too, alongside goods covered by the US-Mexico-Canada free trade pact, a US official told reporters.

The official disputed suggestions that the forced labour tariffs – invoked under the 1974 law's Section 301 – were simply a direct replacement for the expiring levies despite the timing, similar duty rates and vast coverage of nearly all US imports.

"The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it's well past time for our trading partners to do the same," said US Trade Representative Jamieson Greer.

He earlier added that targeted economies represent the majority of US trade.

Washington is separately investigating 16 economies over excess industrial capacity, in probes that could lead to additional duties.

These could result in varying rates among countries eventually, experts warn.

The latest salvo comes shortly after a 25-percent tariff took effect on various Brazilian goods, as Washington accused the Latin American giant of unfair trade practices.

This week, Trump also ordered new 50-percent tariffs on many Canadian products, citing Ottawa's "discriminatory treatment" of American alcohol, automobile and dairy products. (Agencies)


Edited by Cecil Wong