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Tariffs and Forced Labour (Read 145 times)
mothra
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Tariffs and Forced Labour
Sep 1st, 2026 at 11:16pm
 
An excellent article:


Are tariffs an effective way of preventing the use of forced labour?


In the middle of August, a late-night call by Australian Prime Minister Anthony Albanese to US President Donald Trump put a critical question on the negotiating table: a tariff exemption or reduction on imports from Australia that may be linked to forced labour?

On 24 July, the United States imposed tariffs of up to 12.5 per cent on Australian imports, alleging that Australia had failed to prohibit the import of goods produced with forced labour. The Australian government has since opened a public consultation to reform and strengthen the Modern Slavery Act (2018), which closes on 25 September. The amendments include a criminal “failure to prevent” penalty for large companies, civil penalties for reporting non-compliance and alternative forms of enforcement, such as deferred prosecution agreements.

The tariffs were prompted by a June 2026 report prepared by the US Trade Representative (USTR), which investigated 59 countries and the EU, together accounting for 99 per cent of US imports. Most of the countries in question are located in the Global South, but also include Canada, Japan, New Zealand, Norway, Switzerland and the UK. In near-identical findings, each was found to have failed to prohibit the import of such goods. Arguing that this failure “undermines the universal aim” of eliminating forced labour, the report recommends tariffs of 10 to 12.5 per cent, depending on whether the country had previously signed an Agreement on Reciprocal Trade with the Trump administration.

Like Australia, the allegations prompted a number of legislative and regulatory changes in Canada, the UK and the EU.

The key question is, do these tariffs represent a genuine commitment to eradicating forced labour, or do they primarily advance broader economic and geopolitical interests? If the latter, can they nevertheless make meaningful progress in the fight against forced labour, or do they simply repackage exploitation under a political narrative of “benevolent” states and corporations?
What is a tariff and how has it been used?

A tariff is not a cost paid by other countries. It is a tax applied to goods at the point of import and paid by the company importing them into the country. As economist Richard Wolff explains:

    A tariff is a tax … All it means is, when something comes into the United States that was produced outside and is brought in to be sold, it has to pay a tax, literally as it crosses our border into our country. It is paid by the American company that brings it in, which may pass it on to the consumer … It’s an American tax.

Historically, tariffs were a primary means for governments to raise revenue.

Under Article 1 of the US Constitution, the power to impose tariffs on imports belongs to Congress. In exceptional circumstances, under the Trade Expansion Act (1962) and the Trade Act (1974), Congress delegates this authority to the president and the executive branch, but they must first investigate and make certain the findings. In other circumstances — such as in a national emergency declared by the president — Congress may authorise the executive to prohibit or regulate imports; for example, in the latter case, by increasing or decreasing tariffs, without explicitly authorising tariffs. Since the middle of the twentieth century, the US government has invoked tariffs under the pretexts of “national security,” “serious injury” or a “threat” to the domestic industry.

Under the Trump administrations, the United States has pursued an “aggressive” tariff regime. In his first term, Trump introduced tariffs on imports from China, Mexico and Canada, as well as on steel and aluminium. Since taking office in January 2025, he has announced tariffs on almost all countries, the largest being a 125 per cent tariff on Chinese imports. In February of this year, the US Supreme Court ruled that Trump’s 10 per cent “Liberation Day” tariffs — which he announced in April 2025 and justified under the pretext of a fentanyl-trafficking “national emergency” — were illegal and ordered the US government to refund more than $116 billion paid by 330,000 US companies. His replacement “global” tariffs of 10 per cent for 150 days were also ruled unlawful by the US Court of International Trade in May.
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mothra
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Re: Tariffs and Forced Labour
Reply #1 - Sep 1st, 2026 at 11:18pm
 
Criticisms of the USTR report

The USTR report on forced labour has been roundly criticised in many quarters. For example, it has been described as a “copy/paste” job completed in “record time” — around two months, even though an investigation of a single jurisdiction routinely takes between five and eighteen months.

Moreover, some critics have noted that the report’s emphasis is less on human rights than it is on economic interests. This is evident in the report’s language. Forced labour is framed as both a “moral” and an “economic imperative”. There are few references to the “victims” of forced labour, and even then, they are framed in terms of “profit” — that is, the financial loss to industry, per victim. The number of references to the “burdens” or “restrictions” on US commerce is much higher compared to those of forced labour victims. The report also makes multiple references to “unfair” and “distort[ed] competition”, “artificial increase in the comparative advantage of the economy”, “displacement of fairly produced goods”, “unfair cost advantage” and “labor and compliance costs”.

Finally, some of the parties named in the report — most notably the EU — are implementing their own ban on forced labour and therefore consider its findings “unjustified”.

Forced labour in the United States

In validating its findings of non-existent or ineffectively enforced forced labour protections in the named countries, the USTR report makes reference to the enforcement of US prohibitions. It also cites “persistent patterns” within the countries listed of failing to provide minimum age standards for the employment of children, as well as minimum wage, hours of work, and occupational safety and health standards, among other labour protections. But what about the United States’ enforcement of its own prohibitions and record on human and labour rights?

Despite the ban on imports from the Xinjiang Uyghur Autonomous Region, a 2025 joint investigation by the Bureau of Investigative Journalism, The New York Times, and Der Spiegel linked multiple US companies among 100 or more global brands to factories using Uyghur and other ethnic minority forced labour. In fact, under the second Trump administration, there has been a reported drop in the enforcement of the Uyghur Forced Labor Prevention Act (2021). In part, this is due to cuts in 2025 by the Department of Government Efficiency (DOGE) to the Bureau of International Labor Affairs, which is responsible for enforcing commitments to prevent forced labour.

American companies — including Apple, Tesla and Nike — have, on multiple occasions, faced allegations of forced labour, debt bondage or other similar forms of modern slavery and labour abuses within their global supply chains. According to the Business and Human Rights Centre, US companies are “almost four times more frequently” linked to reported abuses than the next most common company-headquartered country, the UK.

Contrary to the argument that tariffs increase the “disparity” and “unlevel playing field” for American workers, companies like Nike have been accused of increasingly offshoring production to countries where the minimum wage is less than a living wage to reduce their labour costs.

Within the United States, there have been allegations of forced labour and other modern slavery-like practices. In 2023, the New York Times reported that migrant children as young as 12 were working dangerous and deadly jobs for major US brands. More recently, it has been revealed that immigrants detained in Immigration and Customs Enforcement (ICE) facilities across the country have been forced to work in the US government’s so-called Voluntary Work Program for $1 per day — work that is essential to the operation of these detention facilities. According to the nonprofit organisation Public Citizen, the largest contractor of ICE detention facilities saved $3 million in a single detention centre in Washington State by paying only $22,100 per year in wages to immigrant detainees. In May, immigrants detained at an ICE facility in New Jersey went on a hunger and labour strike in order to protest the conditions of the facility and the wages.

Modern slavery is also “legal” in the US in the form of compulsory, state-imposed prison labour. The Thirteenth Amendment of the US Constitution abolished slavery, except as a form of punishment. The US has the largest prison population in the world, the overwhelming majority of which are Black people and people of colour. Approximately two-thirds of incarcerated people are forced to work for private or state-owned companies for an average of $0.86 per day — all the while, they are excluded from labour protections (because their work is classified as punishment) and under threat of violence or other forms of punishment (such as prolonged solitary confinement).
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mothra
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Re: Tariffs and Forced Labour
Reply #2 - Sep 1st, 2026 at 11:19pm
 
Australia’s attempts to ban forced labour imports

Australia has made several unsuccessful attempts to restrict the importation of goods produced through forced labour. The Customs Amendment (Banning Goods Produced By Uyghur Forced Labour) Bill (2020) sought to prohibit imports linked to Uyghur forced labour by amending the Customs Act (1901). Following consistent feedback during public consultation, a revised version of the Bill broadened the original proposal to cover all goods produced through forced labour, regardless of their country of origin, but it too failed to pass.

Two years later, the Customs Amendment (Preventing Child Labour) Bill (2023) adopted a narrower focus on “the worst forms of child labour”. But it drew criticism for allowing up to 48 months between identifying a breach and prohibiting imports, while permitting companies to continue trading with suppliers that used such labour during that period. In our submission to this parliamentary inquiry, we argued that this effectively created “a regime of permission” enabling importers to continue profiting from goods produced through exploitative labour. Ultimately, the Legal and Constitutional Affairs Legislation Committee recommended against the Bill, citing concerns that it “could impose undue hardship on Australian businesses” and “provide an avenue for vexatious or unfounded accusations of improper business practices”.

The federal government has moved to pass further amendments to the Modern Slavery Act (2018), by including a proposed new criminal penalty for large organisations that fail to prevent modern slavery in their operations and supply chains. These changes move closer to a due diligence model that requires organisations to actively identify, prevent and address modern slavery risks within their operations and supply chains. But once again, these changes have attracted criticism from industry, which argues they increase regulatory burden, and human rights experts, who contend the reforms still do not go far enough. The Australian Anti-Slavery Commissioner says they would want to see initiatives that “prioritise remedy for victims, and push businesses beyond performative compliance”. The UN Working Group on Business and Human Rights also issued a statement encouraging amendments to Australia’s Modern Slavery Act (2018) that align with the UN’s Guiding Principles on Business and Human Rights.

We contend, however, together with others, that such amendments can hardly be characterised as constituting a ban on imports suspected of being produced through forced labour, nor do they go far enough to realise the federal government’s stated ambition. They give the appearance of progress, while putting off the substantive changes needed to eliminate forced labour.

Beware the benevolent state and corporation

The current debate over tariffs exposes a much deeper and longstanding tension in the global response to modern slavery. It is true that tackling forced labour requires a broad, internationally coordinated approach that secures commitment from as many countries as possible. But even where some countries adopt robust legislation, including import bans, there are reports that goods may be diverted through jurisdictions with weaker regulations or rebranded in third countries to conceal their true origin. Imposing tariffs may exacerbate this practice of “origin washing”.

Tariffs are unlikely to provide that solution. Particularly when embedded within broader geopolitical power struggles between the Global North and South, they risk prioritising economic interests over meaningful, structural change to eliminate forced labour. In our research, we have developed the concept of state-corporate benevolence in modern slavery to describe how governments and corporations frequently present themselves as champions of human rights while simultaneously benefiting from, overlooking or inadequately addressing the structural conditions that enable exploitation.

The way that the Trump administration is using forced labour as a trade and geopolitical tool, and the fact that Australia has opted to make minor changes to legislation rather than impose a customs ban on goods suspected of being produced by forced labour, are yet further examples of the insufficiency of the global response and narrative of state-corporate benevolence.

Ultimately, the debate is not simply about tariffs or trade policy. It is about confronting the enduring legacies of colonialism, global capitalism and unequal North-South power relations that shape whose labour is exploited, whose rights are protected and whose interests are prioritised. Until these structural realities are addressed, claims of benevolence are difficult to reconcile with the persistence of modern slavery.


https://www.abc.net.au/religion/us-tariffs-effective-to-prevent-the-use-of-force...
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Re: Tariffs and Forced Labour
Reply #3 - Sep 2nd, 2026 at 2:38am
 
Interesting. Are we also going to source our Nike shoes from reputable shoe manufacturers, and pay $500 for a pair, instead of the usual $200?

Oh, what the hell am I worried about? If the dickheads are willing to pay $200 for shoes, they will fork out $500 no worries. Meanwhile, I make a $30 pair of running shoes I get from Big W last 5 years.
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mothra
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Re: Tariffs and Forced Labour
Reply #4 - Sep 2nd, 2026 at 7:59am
 
UnSubRocky wrote on Sep 2nd, 2026 at 2:38am:
Interesting. Are we also going to source our Nike shoes from reputable shoe manufacturers, and pay $500 for a pair, instead of the usual $200?

Oh, what the hell am I worried about? If the dickheads are willing to pay $200 for shoes, they will fork out $500 no worries. Meanwhile, I make a $30 pair of running shoes I get from Big W last 5 years.



Should you be at all curious about the issue of forced labour and living wages, Rocky, you would have done a simple Google search where AI even would have told you that Kmart is far more ethical than Big W ... or indeed many more expensive retailers.

That's if you're interested.

Kmart are not perfect but they've implemented a raft of policies they claim to be enforcing. As watchdogs point out, it's an impossible task in this capitalist clime to be purely ethical but Kmart does pretty well.

And Kmart are pretty much consistently cheaper than Big W.

You don't need to spend a fortune to be as close to ethical as you can manage ... you just need to do your homework.
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mothra
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Re: Tariffs and Forced Labour
Reply #5 - Sep 2nd, 2026 at 10:51am
 
Shame you haven't pu in an appearance in this thread, old boy.

Proof that slavery has not ended at all and that colonialism just gave way to corporations.

We've been telling you this for years but here it all is, with even Trump's 2c ... just to peak your interest.

So now we all know that slavery and colonialism haven't actually ended, how do you think the far reaches of the world are faring?

"Shithole countries", dd i hear you say?

Why on earth would any of them want to come here?

Why don't any of us want to go there?!?!!?!
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UnSubRocky
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Re: Tariffs and Forced Labour
Reply #6 - Sep 2nd, 2026 at 1:09pm
 
mothra wrote on Sep 2nd, 2026 at 7:59am:
UnSubRocky wrote on Sep 2nd, 2026 at 2:38am:
Interesting. Are we also going to source our Nike shoes from reputable shoe manufacturers, and pay $500 for a pair, instead of the usual $200?

Oh, what the hell am I worried about? If the dickheads are willing to pay $200 for shoes, they will fork out $500 no worries. Meanwhile, I make a $30 pair of running shoes I get from Big W last 5 years.



Should you be at all curious about the issue of forced labour and living wages, Rocky, you would have done a simple Google search where AI even would have told you that Kmart is far more ethical than Big W ... or indeed many more expensive retailers.

That's if you're interested.

Kmart are not perfect but they've implemented a raft of policies they claim to be enforcing. As watchdogs point out, it's an impossible task in this capitalist clime to be purely ethical but Kmart does pretty well.

And Kmart are pretty much consistently cheaper than Big W.

You don't need to spend a fortune to be as close to ethical as you can manage ... you just need to do your homework.


I did mention that I bought my last pair of shoes 5 years ago for $30. Or are you suggesting that the $30 I paid for the shoes were because they were manufactured cheaply in Indonesia or somewhere where they exploit workers for low wages?

The last time I bought a pair of Nike shoes, it was from a place in Stocklands. The shoes cost $140, and I thought they would last a long time. The shoes fell apart inside a year.

All I have to do for my current pair of running shoes is to take out the soles and put in those Schol gel insoles (or whatever they are called). I am in training for the Rocky River Run next year. I don't want to get a new pair of running shoes until closer to the event. But I am not going to buy a pair of $200 Nike or Reebok shoes, considering that they are likely manufactured in those forced labour factories.
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Re: Tariffs and Forced Labour
Reply #7 - Sep 2nd, 2026 at 6:11pm
 
mothra wrote on Sep 2nd, 2026 at 10:51am:
Shame you haven't pu in an appearance in this thread, old boy.

Proof that slavery has not ended at all and that colonialism just gave way to corporations.

We've been telling you this for years but here it all is, with even Trump's 2c ... just to peak your interest.

So now we all know that slavery and colonialism haven't actually ended, how do you think the far reaches of the world are faring?

"Shithole countries", dd i hear you say?

Why on earth would any of them want to come here?

Why don't any of us want to go there?!?!!?!


Oh? The old boy says that slavery ended far too soon.

He's not talking about the modern definition of labour exploitation either, he means the good old days of rum, sodomy and the lash.

Now I don't know about you, Mother, but I hardly feel the current US administration cares too much about forced labour. It's just a cunning way to impose tariffs.

Our federal and NSW state governments have had a key focus on modern slavery over the last two years. It follows various court rulings, such as the 711 class action findings.

We Australians stand against labour exploitation with every fibre of our being. We ruled out slavery early in our settlement. While our history is far from perfect, many of us campaigned against indigenous labour exploitation too.

For us, slavery and colonialism couldn't end quick enough.

But that's just us.

Superior culture, innit.
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mothra
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Re: Tariffs and Forced Labour
Reply #8 - Sep 5th, 2026 at 8:43am
 
Enquiring mind wrote on Sep 2nd, 2026 at 6:11pm:
mothra wrote on Sep 2nd, 2026 at 10:51am:
Shame you haven't pu in an appearance in this thread, old boy.

Proof that slavery has not ended at all and that colonialism just gave way to corporations.

We've been telling you this for years but here it all is, with even Trump's 2c ... just to peak your interest.

So now we all know that slavery and colonialism haven't actually ended, how do you think the far reaches of the world are faring?

"Shithole countries", dd i hear you say?

Why on earth would any of them want to come here?

Why don't any of us want to go there?!?!!?!


Oh? The old boy says that slavery ended far too soon.

He's not talking about the modern definition of labour exploitation either, he means the good old days of rum, sodomy and the lash.

Now I don't know about you, Mother, but I hardly feel the current US administration cares too much about forced labour. It's just a cunning way to impose tariffs.

Our federal and NSW state governments have had a key focus on modern slavery over the last two years. It follows various court rulings, such as the 711 class action findings.

We Australians stand against labour exploitation with every fibre of our being. We ruled out slavery early in our settlement. While our history is far from perfect, many of us campaigned against indigenous labour exploitation too.

For us, slavery and colonialism couldn't end quick enough.

But that's just us.

Superior culture, innit.


But this is where i strive to appease the old boy. Old style slavery is still with us!

Take, for example, the Xinjiang Province in China. It would astonish you to know how much is on our shelves from Xinjiang. They sell really cheap raw ingredients. They can manage this by forcing labour out of the Uyghurs imprisoned in "re-education camps" while not so quietly exterminating them.

But hey, we need our tomato paste.

I think it might be because the Uyghurs are Muslim that nobody cares or talks about it. Maybe i'm being overly selective. Years on here will jade you.

THen there's Haiti. Ironically.

Much of Africa.

We're not talking below minimum wage here ... we're talking about people, children even, who cannot not work because they owe the pittance they earn to their employers.

And amazingly, it's happening here in Australia.

All so we can have the nice things in life.

You know, those people from shithole countries that they should all fix up instead of coming here, mostly through peril, to try to reach above their station and manage a living wage for providing for decadent westerners?

That's if they can get out of the gulags.

4 Corners did a couple of episodes about this recently. On iView. Recommend.
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