The United States has imposed fresh tariffs on goods produced by forced labour, aligning with British trade standards that demand supply chain transparency. The move, announced by the Department of Homeland Security, targets imports from industries such as electronics, apparel, and agriculture, where forced labour practices have been documented. Experts estimate that over 10 million people are trapped in forced labour globally, contributing to a $150 billion illegal trade.
These tariffs, which can reach up to 25 per cent, are expected to disrupt supply chains for major corporations, including those reliant on Chinese cotton or Thai seafood processing. The UK had previously adopted similar measures under the Modern Slavery Act, requiring companies to report on labour conditions. This cross-Atlantic alignment signals a shift toward enforceable tariffs, not just voluntary commitments.
The new rules also allow for additional duties on products from specific regions if forced labour is suspected. However, critics warn that such tariffs may increase consumer costs and strain diplomatic relations. Yet, from a systems perspective, this intervention is necessary: unchecked consumer demand funnels into opaque supply chains, perpetuating exploitation.
The energy transition, too, has a labour dimension. Cobalt mining for batteries in the Democratic Republic of Congo, for example, often involves child labour. Without pricing these externalities into trade, we risk building a low-carbon future on a foundation of human rights abuses.
The tariffs are a mechanism to correct that market failure. While enforcement remains challenging, the corporate sector must now accelerate supply chain audits and invest in technology like blockchain for traceability. The data is clear: forced labour depresses wages, distorts markets, and undermines climate goals by incentivising short-term extraction.
This is not merely a moral issue; it is an economic and environmental one.
