Trump's Proposed Forced Labor Tariffs Add New Pressure on Global Trade

Trade tensions remain a major concern for businesses as the Trump administration prepares to replace temporary tariffs with a new round of levies targeting alleged forced labor practices, Reshma Kapadia and George Glover reported for Barron's Daily.

The Trump administration is preparing a new round of tariffs targeting alleged forced labor practices among key U.S. trading partners.

The temporary 10% tariffs imposed after the U.S. Supreme Court struck down the administration's global tariffs are set to expire.

Officials have pledged to recover lost revenue through alternative trade measures, including Section 301 investigations into unfair trade practices.

One completed investigation proposes a 10% tariff on imports from economies that have forced labor regulations deemed inadequately enforced by the administration.

About 15 economies—including Canada, the European Union, Mexico, Cambodia, and Malaysia—would be affected. China, South Korea, and Japan would reportedly face higher tariffs of 12.5%.

The Yale Budget Lab estimates that replacing the temporary tariffs with the proposed forced labor levies would generate approximately $2 trillion in federal revenue over the next decade, down from its earlier estimate of $2.3 trillion before the Supreme Court ruling.