Trump Relaunches Tariff War Over Forced Labour Concerns in Global Trade

US Imposes Tariffs on 60 Economies Under Section 301 of Trade Act

The US Trade Representative announced on June 2 that it is pursuing Section 301 of the Trade Act of 1974 to impose tariffs on imports from 60 economies. The list includes major trading partners such as the European Union, Britain, Canada, Japan, Australia, and New Zealand.

According to the US Trade Representative, the tariffs are being imposed due to concerns over forced labor in the production of goods imported into the US. The administration has proposed tariffs ranging from 10% to 12.5% on imports from these economies.

The move comes four months after the US Supreme Court struck down President Trump’s previous use of an emergency powers law to impose tariffs on the world. The new approach under Section 301 may be harder for courts to strike down, according to trade analysts.

Several developed nations that are US allies are among the targets of this new approach. Analysts predict that this move could accelerate the “reorientation” of global trade away from the US and incentivize countries to seek trade deals with each other instead of relying on Washington.

Trade lawyers Shantanu Singh and Vikram Naik stated in a statement that the US tariffs are pushing countries to expand trade quicker, citing examples such as the EU-Mercosur and EU-India trade deals. These agreements create large trading zones, including one between Europe and South America with over 700 million people, and another between Europe and India with two billion people.

The US Trade Representative has also proposed tariffs on imports from countries that have full or partial programs in place to prevent forced labor. The list includes Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Malaysia, Mexico, Pakistan, Taiwan, and the United Kingdom.

Source: Al Jazeera