The Trump administration on Thursday imposed new tariffs of 10% and 12.5% on imports from 18 Latin American and Caribbean countries as part of a broader trade action targeting 60 economies that Washington says have failed to adequately prohibit or prevent imports of goods produced with forced labor.
The measures, announced by the Office of the U.S. Trade Representative (USTR), were adopted under Section 301 of the Trade Act of 1974 following investigations launched in March, consultations with more than 45 governments, more than 2,100 public comments and multiple rounds of public hearings.
U.S. Trade Representative Jamieson Greer said the tariffs are intended to address both human rights concerns and what the administration considers unfair trade practices.
"President Trump recognizes that decades of moral suasion have not eradicated forced labor from global supply chains," Greer said in a statement. "The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it's well past time for our trading partners to do the same."
Argentina, Ecuador, El Salvador, Guatemala, Honduras, Mexico and Trinidad and Tobago will face 10% tariffs after, according to USTR, taking steps toward restricting imports made with forced labor but not meeting U.S. expectations. Brazil, the Bahamas, Chile, Colombia, Costa Rica, Guyana, Nicaragua, Peru, the Dominican Republic, Uruguay and Venezuela were assigned 12.5% duties.
Mexico sought to downplay the impact, saying the measure would not alter tariff treatment for most of its exports. Following trade talks in Mexico City this week, the Economy Ministry said products that comply with the U.S.-Mexico-Canada Agreement (USMCA) will remain exempt from tariffs, meaning about 85% of Mexican exports to the United States will continue to enter duty-free. It added that the new 10% Section 301 tariff replaces the existing 10% tariff imposed under Section 122.
Brazil, however, rejected the decision, with President Luiz Inácio Lula da Silva accusing Washington of using forced labor as justification for a protectionist trade policy. Lula said Brazil criminalizes forced labor, maintains a public blacklist of offending employers and has long been recognized by the International Labour Organization for its enforcement efforts.
Lula added that Brazil would invoke its Reciprocity Law and challenge the tariffs through the World Trade Organization's dispute settlement system.
The tariffs are scheduled to take effect Friday.
