US threatens 60 trading partners with punitive tariffs over forced labor

Greer justified the action with the accusation that key trading partners are failing to keep goods produced by forced labor out of their own markets. "It is unacceptable that our most important trading partners are doing nothing to prevent the import of goods manufactured using forced labor. This forces American workers to compete worldwide under unequal conditions," the US Trade Representative stated. He also announced: "We will no longer tolerate this inequality."

European Reactions and Legal Classification

Opposition is coming from Europe. Bernd Lange, Chairman of the Committee on International Trade in the EU Parliament, called the US accusations "completely absurd." He pointed out that the EU had already adopted the world's strictest legislation against the distribution and export of forced labor products in 2024: "In 2024, the European Union adopted the world's strictest and most advanced legislation prohibiting the distribution of products manufactured using forced labor on the Union market, as well as their export from the Union market." The EU Commission stated that the accusations were unfounded and stood behind the already negotiated trade agreement with the US.

Lange also clarified: "For us, it is clear: anything beyond the 15 percent agreed upon in Scotland is unacceptable." Deputy government spokesperson Steffen Meyer stated that the federal government had noted the new developments but could not yet fully assess them. The black-red coalition wants to focus on implementing the trade agreement with the US agreed upon in the summer of 2025. The EU Parliament's Committee on International Trade had approved the agreement on Tuesday.

Legally, the Trump administration is on uncertain ground, according to experts. The US Supreme Court had declared numerous special tariffs imposed by Trump on the basis of an emergency law unlawful in February, stating that customs sovereignty lies with Congress. As SRF economics editor Damian Rast explained: "The current basis for the 10 percent tariffs that the US is imposing on Swiss products expires in July. Therefore, the Trump administration is looking for a new justification to impose tariffs." US Treasury Secretary Scott Bessent announced immediately after the ruling that a different legal basis would be used, primarily Section 301 of the Trade Act of 1974.

Swiss Position and Thirty-Day Deadline

Manfred Elsig, Professor of International Relations and Director of the World Trade Institute at the University of Bern, sees a pattern: "Trump does what he wants, but it's not surprising." Elsig expects that the new legal basis will also be reviewed by the Supreme Court. Three questions are at stake: the Non-Delegation Doctrine regarding the separation of powers, the Major Question Doctrine regarding the interpretation of powers, and potential procedural errors or arbitrariness in implementation. Experts see the greatest chance of overturning the tariffs in court based on allegations of procedural errors and arbitrariness. Rast considers the forced labor justification itself to be a pretext; the industry association Swissmem also spoke of "absurd," and the business umbrella organization Economiesuisse described the accusations as unfounded. The Swiss Ministry of Economic Affairs emphasized that US industry is not disadvantaged by practices in Switzerland.

While the US government presents the action as a consistent protection of domestic jobs, the affected states are pushing back. The British government stated that it is taking action against forced labor. Beijing rejected the accusations, stating that there is no forced labor in China and that the country rejects unilateral tariffs. A US report had identified India as an intermediary in cotton supply chains linked to Chinese forced labor. Rahul Sahgal, head of the Swiss-American Chamber of Commerce, pointed out that the Trump administration is striving to comply with US laws: "The Trump administration is keen to comply with US laws because it does not want to be punished by the Supreme Court again. Therefore, Switzerland is also being granted the legally required 30-day period in which it can express its opinion."

Background: Forced Labor in Asia

In terms of content, the US government relies on reports of widespread forced labor. According to the International Labour Organization (ILO), forced labor is prevalent, particularly in the Asia-Pacific region, in terms of the number of people affected. A recent UN report states that the state and companies in China use forced labor, especially in Xinjiang and Tibet, regions with national minorities. Under the guise of poverty alleviation, Chinese authorities force Muslim Uyghurs from Xinjiang to leave their homes and work in distant factories for low wages under constant supervision. Xinjiang province's five-year plan, which expired in December, lists 13.8 million "successful" labor transfers. The UN stated: "The labor transfers are part of the government's policy to transform the cultural identity of Tibetans and Uyghurs under the guise of poverty alleviation."

Forced labor is also documented in other regions of the world. In Myanmar, the military has been forcing the population to perform unpaid labor on infrastructure projects for decades. In Southeast Asia, migrant workers from Myanmar and Cambodia work under exploitative conditions on Thai fishing vessels; reports of delayed wages and deductions by intermediaries are increasing. Thailand, Indonesia, and Vietnam export fish and seafood worth billions of dollars annually to the US. In South Asia, India, Bangladesh, and Pakistan stand out due to the sheer number of victims. More than 80 percent of forced labor victims in India are Dalits. In rural areas, Dalits are forced to perform unpaid labor, such as cleaning latrines and sewage channels without protective equipment. Many farmers are indebted to large landowners and perform hereditary compulsory labor to repay their debts.

The Trump administration had previously announced its intention to impose tariffs on countries that do not adequately shield their markets from forced labor products. In Switzerland, in addition to the forced labor accusation, an overcapacity investigation is underway within the same timeframe, which could also lead to tariffs or other measures. According to Elsig, it is still unclear which products would be specifically affected; goods with an inflationary impact in the US are likely to be excluded. Elsig also expects multinational corporations to apply for exemptions from Trump and offer concessions in return.