EU, US seal bilateral tariff deal as Brazil faces separate sanctions
EU-US tariff deal caps European exports at 15%; US proposes separate Brazil tariffs.
Event / Economy
Trump Trade Tariffs Forced Labor
Trump administration proposes tariffs on 60 trading partners based on forced labor enforcement probe, with Canada, Mexico, Taiwan, and UK facing 10% duties and China, Japan, India, South Korea, Brazil, and Switzerland facing 12.5% duties. Public hearings scheduled for July 7.
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2026-08-17 to 2026-11-14 · UTC publication dates
Coverage begins 3 Jun, 17:05 UTC
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What happened
Public hearings on proposed forced labor tariffs scheduled to begin July 7
The proposed tariffs will not take effect immediately and are subject to public comment and review. Public hearings on the proposed duties are scheduled to begin on July 7. The investigation was conducted under Section 301 of the Trade Act of 1974.
Supreme Court rules Trump exceeded authority using emergency powers for tariffs in February
In February, the Supreme Court ruled that President Trump had overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) of 1977 to impose sweeping tariffs on U.S. trading partners. The Trump administration said it would appeal a federal judge's order making companies that paid those duties eligible for refunds.
Trump meets with Xi Jinping to discuss market access and trade boards
President Trump recently returned from a visit to China where he and Chinese leader Xi Jinping discussed expanding market access for American businesses in China and increasing Chinese investment into U.S. industries. The two leaders agreed to establish separate boards of trade and investment, though few details were provided.
UN estimates 27.6 million people engaged in forced labor as of 2021
The U.S. Trade Representative's report cited an estimate from the UN's International Labor Organization that as of 2021, 27.6 million people were engaged in forced labor globally. The report defined forced labor as work or service exacted from a person under threat of penalty.
China denies forced labor allegations and calls for dialogue
A Chinese Foreign Ministry spokesperson denied allegations of forced labor in China, stating there is no forced labor in the country. The spokesperson called for resolving economic issues through dialogue and warned that a trade war does not serve anyone's interests.
US Trade Representative proposes 10% or 12.5% tariffs on 60 trading partners for forced labor enforcement failures
The U.S. Trade Representative released a report proposing additional tariffs on products from 60 trading partners investigated for failing to enforce prohibitions on imports made with forced labor. Canada, Mexico, Taiwan, and the United Kingdom would face 10% additional tariffs, while China, Japan, India, South Korea, Brazil, and Switzerland would face 12.5% additional tariffs. Some goods including beef, tomatoes, and coffee are exempt or subject to lower rates.
US separately proposes 25% tariffs on Brazil for unfair trade practices
Earlier in the same week as the forced labor probe announcement, the Trump administration separately proposed 25% tariffs on imports from Brazil, claiming the world's 10th-largest economy engages in trade practices that are unreasonable and burden U.S. commerce. The investigation showed Brazil had lax anti-corruption enforcement and unfair tariffs of its own.
EU and US approve tariff deal capping most EU exports at 15%
Two weeks prior to the forced labor probe announcement, the European Union approved a tariff deal with the United States to cap tariffs on most EU exports at 15%. This agreement followed intense debates among the EU's 27 member nations and threats by European lawmakers to block the agreement.
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2 alternative perspectives
Supreme Court Blocks Trump's Emergency Tariff Authority Over Forced Labor
Supreme Court blocks Trump's emergency tariff authority for forced labor enforcement.
Trump and Xi meet as China rejects forced labor accusations
Trump and Xi met on trade while China denied forced labor accusations and requested dialogue.
US proposes tariffs on 60 nations over forced labor enforcement
US proposes tariffs on 60 nations to enforce forced labor compliance, with hearings starting July 7.