US Imposes New 10% Tariffs on Bangladesh Amid Forced Labor Compliance Policy

The Trump administration has announced new tariffs of 10% and 12.5% targeting approximately 60 trading partners, including Bangladesh and the European Union. The sweeping measures were officially published in a Federal Register notification and come as a direct response to what Washington terms lax enforcement of prohibitions against goods produced using forced labor.

The new duties are designed to seamlessly replace a temporary 10% global tariff implemented earlier this year, the 150-day statutory limit of which expires at 12:01 a.m. Friday.

The latest trade action follows a turbulent period for U.S. trade policy. In February, the U.S. Supreme Court struck down President Donald Trump’s broader sweeping “reciprocal” tariffs (which ranged from 10% to 50%) enacted under emergency powers to reduce the national trade deficit.

In response, the White House introduced a temporary 10% global import levy under Section 122 of the Trade Act of 1974. With that temporary measure expiring, the administration has pivoted to Section 301 of the Trade Act, utilizing a more permanent legal framework to penalize economies over the alleged failure to effectively block goods tied to forced labor.

China Daily

According to the USTR Federal Register filing, the new policy will cover 99.4% of U.S. imports. However, key exemptions have been granted for essential goods, including oil and gas, fertilizer, and specific foodstuffs, alongside products already hit by national security duties like steel and aluminum.

Goods currently in transit and loaded onto vessels before Friday, provided they enter for consumption before July 28, will remain exempt from the new levies.

Supply Chain Dive

Scope of the Tariffs and Impact on Bangladesh

U.S. Trade Representative Jamieson Greer defended the decision in a statement, emphasizing that the U.S. has enforced a forced-labor import ban for nearly a century.

USTR

“Our trading partners must do the same,” Greer said. “Today’s action will begin to correct what is both a human rights abuse and a distortive trade practice to improve the welfare of workers everywhere.”

10% Tariff Tier: Applied to economies that have established or committed to legal frameworks addressing forced labor imports. This tier includes Bangladesh, alongside Argentina, Britain, Cambodia, Canada, India, Indonesia, Malaysia, Mexico, Pakistan, Sri Lanka, and others.

Adjusted / MFN-Synced Rates: For major allies like the European Union, Japan, South Korea, Switzerland, and Taiwan, the total combined tariff is adjusted to 10% or 12.5% net of existing Most-Favored-Nation (MFN) duties.

12.5% Tariff Tier: Imposed on the remaining 38 unexempted economies, notably including China. Washington has repeatedly accused Beijing of utilizing labor camps to detain and exploit Uyghur minorities—allegations that the Chinese government consistently denies.

The unilateral announcement has drawn swift pushback and criticism from several global trading partners:
Norway: Foreign Minister Espen Barth Eide stated there was zero basis for the tariffs, pointing out that Norway already maintains strict regulations to block trade involving forced labor.

Australia and Brazil: Both nations labeled the measures entirely “unjustified” and announced plans to actively pursue their removal.

Canada: Canadian Trade Minister Dominic LeBlanc responded to the unilateral duties by noting that Ottawa intends to maintain constructive dialogue with Washington in the coming weeks to resolve outstanding bilateral matters in the mutual interest of citizens.