New US modern slavery tariffs signal changing approach to global trade
The US has implemented new tariffs under Section 301 targeting countries based on their enforcement of forced-labor prohibitions. The policy affects 60 economies, including the UK and China, and has drawn criticism for potentially masking broader economic policy shifts.
Why it matters
These tariffs represent a significant escalation in trade protectionism and use human rights as a lever for international economic policy.
On July 24th, the United States put into effect a new policy designed to fight modern slavery.
As part of the Office of the United States Trade Representative’s (USTR) Section 301 of the Trade Act of 1974, rates of 10 per cent have been applied to economies that have banned or pledged to ban forced-labour imports and 12.5 per cent for those that have not.
According to the US Government, “under Section 301, Congress grants the Office of the United States Trade Representative (USTR) a range of responsibilities and authorities to investigate and take action (e.g., impose a tariff) to enforce U.S. rights under trade agreements or respond to certain foreign trade practices.”
Currently, 60 economies have been targeted for, as the USTR put it, “their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.”
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in