The United States Trade Representative opened an investigation into 60 countries, including Brazil, for alleged omission in combating forced labour [1].
This move signals a tightening of U.S. trade policy regarding human rights and labor standards. The investigation could lead to significant financial penalties for exporting nations that fail to enforce labor laws, potentially destabilizing trade relations between Washington and Brasília.
According to a USTR press release, the U.S. has launched the probe into 60 nations for their suspected failure to address forced labor [1]. The USTR alleges that insufficient enforcement against forced labour in Brazil and other countries harms U.S. workers, and violates labor rights provisions within the United States-Mexico-Canada Agreement (USMCA) [1].
U.S. Trade Representative Katherine Tai warned that Brazil faces specific economic consequences if its policies do not change. Tai said that if Brazil does not improve its policy to combat slave labor, the U.S. could apply an additional tariff of 12.5% [1] on exports.
This potential 12.5% penalty would be added to a previously proposed 25% tariff [2]. The proposal for the initial 25% tariff was made on June 2, 2024 [2], while the broader investigation into the 60 countries was announced on June 12, 2024 [1].
Analysts suggest the timing of these measures adds further strain to diplomatic ties. Daniel Rittner, journalism director at CNN Brasil, said this is more pressure on Brasília at a moment already tense in relations with Washington [2].
The USTR is focusing on the gap between national legislation and actual enforcement. By linking trade tariffs to human rights benchmarks, the U.S. is utilizing economic leverage to force policy changes in global supply chains.
“The U.S. has launched the probe into 60 nations for their suspected failure to address forced labor.”
The U.S. is increasingly using trade mechanisms as a tool for human rights enforcement. By layering a 12.5% penalty on top of a 25% tariff, the U.S. is creating a high-stakes economic incentive for Brazil to modernize its labor inspections. This approach shifts the focus from diplomatic requests to direct financial consequences, potentially forcing a systemic overhaul of how Brazil monitors forced labor in its export-heavy industries.
