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According to Bloomberg, the US is proposing new tariffs of at least 10% on imports from 60 trading partners following an investigation into goods allegedly produced by forced labor, as President Donald Trump seeks to rebuild the tariff wall struck down by the Supreme Court in February. The Office of the US Trade Representative said a 10% rate would apply to Canada, Mexico, the European Union, Taiwan and the UK, while China, India, Japan, South Korea, Brazil and Switzerland would face a 12.5% levy. The lower rate targets economies that prohibit or have committed to prohibiting forced-labor imports, while the higher rate applies to those that have failed to enforce such measures.
The duties, recommended under Section 301 of the Trade Act of 1974, are subject to a public comment period with written submissions due July 6 and hearings beginning July 7. USTR Jamieson Greer said the US "will no longer tolerate" the disparity. The new levies are expected to take effect around the time the existing 10% global tariff under Section 122 expires in July. The proposal includes exemptions for food items including beef, tomatoes, bananas, coffee and orange juice, as well as metals and certain fuels and chemicals. Global equities held gains after the announcement, with the MSCI All Country World Index rising 0.1% to a record.