US imposes new tariffs on 60 economies over forced labour concerns

Madrid – US president, Donald J. Trump, has once again disrupted trade relations with key partners and major global economies by announcing new additional tariffs for 60 economies. These new tariffs range from 10 to 12.5 percent. Special tariff quotas have also been added for textiles from Bangladesh, Cambodia, Indonesia and Malaysia, which are conditional on the import of US textiles and cotton.

The trade war initiated by the US in April 2025, from its proclaimed “Liberation Day”, was justified by allegedly abusive and unbalanced trade relations with its main partners. Tensions with China, Canada and Mexico were attributed to poor control over fentanyl entering the country. This time, the rationale is based on goods produced through forced and slave labour. The entry of such goods is prohibited in the United States (US) economy. The Trump Administration aims to enforce this ban fully, following an investigation by the Office of the United States Trade Representative (USTR). The USTR, a US government agency, investigated the actions, policies and practices of 60 economies related to forced labour.

According to the Memorandum signed by the US president on July 23, 2026, the investigation found that all 60 economies engaged in acts, policies and practices contrary to the US ban on goods made with forced labour. Some countries, including Canada, Ecuador, the European Union, Mexico and Pakistan, have laws prohibiting such imports but do not enforce them effectively. Others have unfulfilled commitments to ban these products, partial tariff regimes to prevent their import, or a complete lack of restrictions on goods produced or imported using forced labour. In response to these findings, the US government aims to effectively enforce the ban on importing goods made with forced labour.

Tariffs of 10 to 12.5 percent for 60 economies

To this end, and after considering the findings of the investigation, the US president has authorised the USTR to impose tariffs of between 10 and 12.5 percent on all 60 economies investigated. These are generalised tariffs, but with exemptions. Exemptions apply to raw materials where new tariffs could cause supply shortages; products that could cause economic “disruptions”; goods that cannot be grown or produced in sufficient quantities in the US or sourced elsewhere; products where tariffs would not effectively enforce the ban; and “certain products” from Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Jordan, Malaysia, Switzerland, Taiwan or the UK. The latter exemption is intended to encourage these economies to enact, fulfil commitments, or effectively enforce laws banning goods made with forced labour.

Aside from these exemptions, the presidential memorandum states that from 12:01am US East Coast time on Friday, July 24, 2026, president Trump has ordered an additional +10 percent tariff on imports from Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, the UK, and Trinidad and Tobago.

In another set of measures, which does not represent an additional increase, it has been ordered that products from the European Union and Taiwan will have a minimum total tariff of 10 percent if the original rate is lower. This percentage will be 12.5 percent for products from Japan, South Korea and Switzerland.

Finally, for the remaining investigated economies, the US president has ordered an additional tariff of +12.5 percent. This is the most severe measure in the Memorandum issued by Donald Trump. It is reserved for economies that the USTR investigation found to have the least determination to prohibit the import and procurement of goods made with forced and slave labour.

Special tariff quotas for textile products from Bangladesh, Cambodia, Indonesia and Malaysia

As the second part of his presidential edict, Trump has ordered the USTR to establish a special tariff quota for some of the main Asian textile-producing countries as soon as possible, specifically for Bangladesh, Cambodia, Indonesia and Malaysia. The US will seek to impose a special tariff regime on these countries, initially for three years. The aim is to encourage each of these four nations to import both US textile products and US-grown cotton. This is intended to reduce their “dependence on inputs” from other sources that are “more likely to contain inputs from forced labour”. This measure, although not explicitly stated, appears to be aimed at China and the controversial Xinjiang cotton. This raw material, whether raw or used in garments and textiles, has been banned from entry into the US since January 2021. The ban is due to its connection with the alleged slave labour of the Uyghur ethnic minority, which the Chinese government is accused of using for harvesting.

In return for these potential imports, the US president has also ordered the USTR to adjust the tariff quotas for the four Asian producing countries in due course. This will allow “a certain volume” of textiles and apparel from Bangladesh, Cambodia, Indonesia and Malaysia to enter the US completely free of the new tariffs. The volume of textiles and garments will be determined “based on the import of US inputs” and “the import of US cotton” by each of the four countries.

New tariff rates imposed by US