The Trump administration has sought to reinstate its global tariffs by invoking concerns over forced labour practices in the supply chains of America’s trading partners, a move that has sparked legal challenges and heightened international scrutiny. This approach emerged after the US Supreme Court invalidated previous tariffs earlier this year, which had relied on emergency economic powers.
In July, the administration invoked Section 301 of the Trade Act of 1974 to impose tariffs on 60 countries accused of not sufficiently addressing forced labour issues, arguing that such practices undercut American workers. Section 301 gives the president authority to take action against unfair trade practices, and while it has previously been used in disputes ranging from beer to green technology, this marks a significant broadening of its application centered on human rights concerns.
The renewed focus on forced labour gained momentum following enactment of the Uighur Forced Labour Prevention Act (UFLPA) in 2022, which prohibits imports linked to forced labour in China’s Xinjiang region. Beijing denies the allegations of forced labour in Xinjiang. Since the UFLPA came into force, US Customs and Border Protection has investigated approximately 44,000 shipments, blocking nearly 27,000, primarily electronics. Major corporations such as Volkswagen have taken measures to investigate their supply chains, exemplified by the company’s 2024 incident where a shipment was barred entry due to a part traced to Xinjiang.
The Trump administration’s forced-labour tariffs have drawn criticism, with Democratic officials from over two dozen states filing lawsuits last week in a New York federal court seeking to overturn the measures. These critics argue the White House is using forced labour as a pretext for protectionist trade policies. The administration declined to comment on the ongoing legal proceedings.
Nevertheless, the spotlight on forced labour has prompted several US allies to bolster their enforcement frameworks. The European Union plans to enforce its own forced-labour import ban by December 2027, almost a century after the United States first prohibited imports tied to forced labour. Canada, which agreed to ban such goods as part of a previous free-trade deal, has held only 53 shipments for inspection and blocked two shipments as of early October. In response to criticism in a US Trade Representative (USTR) preliminary report, Canada proposed tougher forced-labour legislation in June.
Experts suggest that the increased enforcement and dialogue around forced labour have created a global push to reform supply chain transparency. Laura Murphy, a researcher advising the Biden administration, noted that the Section 301 investigations have driven renewed and urgent engagement on forced labour issues worldwide, with some regions seeing rapid policy movement that had eluded advocates for years.
International developments include Colombia’s recent prohibition on imports linked to forced labour and India’s similar ban introduced in July. The USTR also hosted training sessions in September to help 50 countries strengthen their forced-labour prohibitions, while Mexico and Argentina pledged at a recent G20 meeting to collaborate on eradicating forced labour in global supply chains.
Legal experts suggest that these efforts will likely persist regardless of the outcome in US courts. Richard Mojica, an international trade attorney, said countries that have implemented forced-labour laws are unlikely to reverse course. Companies, meanwhile, are intensifying efforts to trace and verify the origins of all components in their supply chains to comply with evolving regulations and avoid penalties.
As global trade adapts to these heightened human rights expectations, the use of tariffs and legal tools targeting forced labour is expected to remain a key element of international commerce and enforcement strategies.