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Trump unveils forced labor tariffs framed to withstand legal challenges
The new 10% to 12.5% duties replace a temporary global levy ending Friday, with market focus shifting to how durable the Section 301 legal basis proves in court.
The new tariffs announced by the Trump administration are designed to keep pressure on trade even if courts challenge them, with Forexlive citing a Wall Street Journal report as the administration points to a more durable legal foundation for the levies.
Starting Friday, the United States will impose duties ranging from 10% to 12.5% on dozens of trading partners, replacing a temporary global tariff set to expire the same day. The program is framed as anti forced labor measures and is described as applying to 60 countries that the Office of the US Trade Representative says account for about 99% of US trade.
Under the new structure, countries with laws addressing forced labor face the 10% rate, while those without such statutes face 12.5%. Goods already covered by separate national security tariffs, including steel, aluminum, automobiles and auto parts, are excluded, as are certain food, agricultural, fertilizer and energy products.
Forexlive notes that the key change is the legal basis, with the levies grounded in Section 301 of the Trade Act of 1974. Trade lawyers quoted by the Journal expect this approach to be more likely to survive challenge than the emergency powers the Supreme Court struck down in February, and they add that once in place these duties can remain indefinite and be adjusted unilaterally by the president.