Business

US announces tariffs on dozens of countries over forced labour concerns

BBC Business · 2026-07-23

AI SUMMARY

• What happened: The US is imposing new tariffs, ranging from 10% to 12.5%, on imports from about 60 countries due to concerns over forced labour practices. • Why it matters: This decision escalates global trade tensions and could lead to higher consumer prices in the US, as businesses may pass on the costs of tariffs to consumers. • What to watch next: Monitor responses from affected countries, potential retaliatory tariffs, and ongoing investigations into manufacturing practices that could lead to further duties.

**US Imposes Tariffs on Imports from 60 Countries Over Forced Labour Concerns**

*New York, July 23, 2026* – The United States has announced the imposition of new tariffs on imports from approximately 60 trading partners, citing concerns over inadequate measures to combat forced labour. The tariffs, which will range from 10% to 12.5%, are set to take effect on Friday and target several key economic allies, including the United Kingdom, European Union, Canada, Japan, and India.

This decision marks a significant escalation in the ongoing global trade tensions, which have intensified since President Donald Trump resumed office in January 2025. The announcement follows a ruling by the US Supreme Court earlier this year, which deemed many previously enacted tariffs under emergency powers to be illegal. In response, the Trump administration has sought alternative legal pathways to implement its trade policies.

Historically, President Trump has utilized tariffs not only as a means to bolster domestic manufacturing and stimulate the American economy but also as leverage to influence other nations on various non-trade issues, including labour regulations. The recent focus on forced labour underscores a growing concern within the US regarding ethical sourcing and fair labour practices in global supply chains.

In recent communications, the White House has specifically highlighted Canadian imports, warning that goods crossing the northern border could face tariffs as high as 50%. This move has raised alarms among Canadian officials and businesses, who are now considering their options in response to the potential economic impact.

Economists have expressed concerns that the new tariffs could lead to increased prices for everyday consumer goods, such as coffee and microwaves. As tariffs are typically paid by importing companies, these businesses may pass on the additional costs to consumers, resulting in higher prices at retail.

The White House has defended the tariffs as necessary measures to protect American workers and promote fair competition in the marketplace. However, the announcement has prompted immediate backlash from business groups and affected countries, many of which are preparing to mount legal challenges or consider retaliatory tariffs in response to the US actions.

In addition to the current tariffs, the administration is reportedly investigating 16 countries that account for a significant portion of US imports. This investigation is focused on allegations of manufacturing overcapacity, which could lead to further duties being imposed later this year.

As the situation develops, the international community will be closely monitoring the reactions from affected nations and the potential ramifications for global trade dynamics. The US's approach to tariffs and trade policy remains a contentious issue, with implications that could resonate well beyond the immediate economic landscape.

Source: BBC Business
RELATED NEWS

More Stories

All News
Business

UK complacent about war threat, warns defence boss

• What happened: Dr. Charles Woodburn, CEO of BAE Systems, warned that the UK has been complacent about the threat of foreign attacks, particularly from Russia,...

Business

UK mortgage rates rise to highest level for a month

• What happened: UK average mortgage rates have risen to their highest level in a month due to increased funding costs for lenders amid renewed tensions in the ...

Business

We split bills equally even when one of us earned a lot more

• What happened: Hannah and Max, a married couple, share a joint account where they equally split their finances despite differences in their incomes, with Max ...

Business

Lawmakers push for AI 'kill switch' after OpenAI goes rogue

• What happened: U.S. lawmakers introduced the AI Kill Switch Act, granting the government authority to disable AI systems that pose public safety risks, follow...

Business

Pubs cheer business rates relief while other firms 'left out in the cold'

• What happened: Andy Burnham announced a 20% business rates relief for pubs, social clubs, and live music venues, which has been welcomed by industry leaders b...

Business

Oil prices hit $100 for the first time since May

• What happened: Oil prices surged to $100 a barrel for the first time since May, driven by escalating tensions in the Middle East and increased military action...