US President Donald Trump has proposed imposing double-digit tariffs on 60 countries, representing 99% of US imports, citing concerns over forced labour practices. The move drew immediate criticism from major economies, including the EU and China, and experts expect lawsuits once it takes effect.
Trump's proposed forced-labour tariff drew immediate criticism from major economies such as the EU and China, and experts expect lawsuits once it takes effect.losing his sweeping reciprocal tariffs to a court decision , US President Donald Trump has made his first move to replace them with trade levies he believes are less vulnerable to legal challenges.
On June 2, Trump’s trade office in Washington issued a comprehensive 98-page report proposing double-digit tariffs on 60 countries – which represent about 99 per cent of all US imports – after an investigation initiated on March 12 showed they were not doing enough to restrict trade in goods produced by “forced labour”. The Office of the US Trade Representative placed trading partners into two groups, depending on what it considered varying degrees of ineffective enforcement of rules on trade in “forced-labour goods” and whether they had already struck a trade deal with the Trump administration.
The USTR said it would impose tariffs at the rate of 10 per cent on imports from Canada, the European Union, the UK, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia and Taiwan.would face higher duties of 12.5 per centBut nothing is settled yet. The tariff rates may change for some countries, including Singapore, as the proposed measure is subject to public comments and hearings before a USTR trade panel.
This will start in July and may take weeks, if not months. There is also at least one more USTR investigation that could lead to another tariff measure – pertaining to excess manufacturing capacity – that remains pending. Despite the tariff tumult since 2025, Singapore has continued to clock strong growth in exports, thanks to the AI boom and increased trade with partners across Asia.
For now, little would change for companies that count the US as an export market if and when the new tax relating to forced labour applies. The new measure will replace the 10 per cent global tariff – set to expire in late July – imposed soon after the Feb 20 Supreme Court ruling. That would raise the US effective tariff rate by just 0.5 per cent, according to experts.
Some of the sectoral exemptions, if not all, such as those for certain electronics and pharmaceuticals imports into the US, will also continue. Hence, semiconductor manufacturers and drugmakers in Singapore may have to continue their negotiations with the Trump administration to ensure the waivers apply to their exports. The waivers depend on a host of factors, including their commitment and plans to invest in the US. The Feb 20 Supreme Court ruling also did not affect other targeted sectoral tariffs.
That means the 50 per cent tariff on steel, aluminium and copper, as well as the 25 per cent tariff on foreign-made cars, heavy-duty trucks and engines, will remain in place. The Feb 20 decision declaring tariffs based on the 1977 International Emergency Economic Powers Act unconstitutional remains effective. All companies that paid the IEEPA tariffs – totalling about US$166 billion – can continue to seek refunds.
In fact, the Supreme Court ruling against IEEPA and a subsequent decision by the US Court of International Trade against the temporary 10 per cent global duty in May have set a pattern of judicial scrutiny of Trump’s broad executive tariff-imposing authority. US proposes levies of at least 10% as Trump rebuilds tariff wallThe Trump administration has used Section 301 of the Trade Act of 1974 as the legal basis for imposing the new tariff on trade in forced labour goods because it has no statutory expiration date or maximum percentage cap.
Historically, measures imposed under this law have also proven far more resilient against judicial overturns. While the CIT and the US Court of Appeals for the Federal Circuit have upheld the executive branch’s broad authority under Section 301 in previous cases, experts argue that using the statute as a dragnet to apply blanket universal or multilateral tariffs to dozens of countries stretches the law beyond Congress’ intent.
Section 301 was originally written using singular language to target the unfair trade practices of “a foreign country”. It has also targeted goods from specific places; for instance, in 2021 the US banned all imports from the Xinjiang region of China on the presumption that they are made with forced labour.
But unlike the 2021 ban, the latest USTR report does not say whether specific nations are actually importing goods made with forced labour, nor does it look at whether products are being made in those countries using forced labour. USTR only assessed whether a country has a formal ban in place on goods imported using forced labour and whether it is enforcing the ban or attempting to block such imports.
The trade office is simply arguing that if a nation is failing to enforce a ban on forced labour, it burdens or restricts US commerce by subjecting US producers to unfair competition. The proposed forced-labour tariff drew immediate criticism from major economies such as the EU and China. Countries across Asia, Europe and North America may attempt to drag out the public comment, hearings and review periods.
DBS Bank said in a note on June 4 that the US no longer holds the same economic leverage over its allies as it did in past trade disputes.
“Since Trump 2.0, tariff escalation and geopolitical shocks have reshaped policy priorities, making retaliation increasingly viewed as economic self-preservation rather than a negotiating tactic,” it said. By targeting 60 economies under a legal rationale that many governments may challenge, Washington risks turning a bilateral pressure strategy into a broader multilateral response, the bank noted.
Please follow us on Google to support us US Tariffs Forced Labour Trade War
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trump's Tariffs Have Opposite Effect on Wages, Contributing to Economic DeclinePresident Donald Trump's tariffs have had a negative impact on the US economy, with prices of goods increasing and wages being suppressed. The levies were introduced to raise tax revenue, bring back manufacturing to the US, and achieve foreign policy goals, but they have had the opposite effect. The Congressional Budget Office projects 6 per cent deficits for the coming decade, and industrial production has expanded by only 0.13 per cent per month since the start of 2025.
Read more »
Trump administration proposes 25% tariffs on Brazil despite extensive US trade surplusWASHINGTON – The Trump administration proposed 25 per cent tariffs on imports from Brazil, charging that the world's 10th-biggest economy engages in trade practices that are 'unreasonable'' and that 'burden or restrict US commerce.''Brazil's President Luiz Inacio Lula da Silva said he received the decision 'with indignation.
Read more »
US proposes forced labor tariffs on 60 economies in sweeping trade actionThe US Trade Representative has announced proposed duties of 10-12.5% on imports from 60 economies, accusing them of failing to ban goods made with forced labor. The action targets major trading partners including China, Vietnam, the UK, Canada, and Mexico, with exemptions for USMCA-compliant goods. The tariffs follow Supreme Court rulings against earlier Trump-era duties and will undergo public review before implementation.
Read more »
US Plans Extra Tariffs for Most Trading PartnersThe US Trade Representative announced plans to impose tariffs of 10% or more on products from dozens of major trading partners after a probe into imports of goods allegedly made with forced labour.
Read more »