President Donald Trump is taking a strategic approach to revitalize his tariff policy, focusing on international trade practices involving forced labor. This move comes after setbacks in the Supreme Court and other legal challenges. The administration’s new tariff strategy is designed to be more precise and potentially long-lasting.

Targeting Forced Labor

US Trade Representative Jamieson Greer released a comprehensive 98-page report following an investigation into trading partners’ policies on goods made with forced labor. The report identified 60 economies that have not effectively enforced prohibitions on such imports. Greer emphasized the need for these countries to address this issue promptly, stating, “The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable.”

As a remedy, Greer proposed a minimum 10% tariff on the trading partners investigated, using authority from Section 301 of the Trade Act of 1974. Countries like Canada, Mexico, and the European Union would be subject to this tariff. Meanwhile, nations such as China, Brazil, Japan, and India, which have not taken initial steps to eliminate forced labor, could face a steeper 12.5% tariff.

Public Comment and Future Steps

The proposed tariffs are currently in a public comment period, lasting until July 6, with hearings scheduled for July 7. This approach follows a previous attempt by Trump to impose a universal 10% tariff under Section 122 of the Trade Act, which was challenged in court.

Section 301, unlike Section 122, allows for indefinite tariffs without a cap on their level or duration. The administration is also investigating excess manufacturing capacity in over a dozen countries, indicating that further actions may follow.

Original reporting: KRDO (Colorado Springs metro) — read the source article.