Proposal for 10-12.5% levies, to also include EU, Taiwan and Australia, would allow US president to skirt court-imposed limits

Donald Trump has threatened tariffs of between 10% and 12.5% on 60 trading partners including the UK, the EU and Australia over alleged forced labour failures, in the latest attempt to revive his signature trade policy.

The EU immediately hit back, saying it expected the US to respect the tariff deal it entered into last July and arguing that stealth tariffs breached the spirit of that agreement.

The proposed levies on partners accused of allowing imports of goods produced by workers under coercion come after the US supreme court ruled in February that the president’s “liberation day” tariffs were illegal.

Trump responded by imposing 10% across-the-board tariffs, but last month the US trade court found those were also unlawful, although they remain in place during the appeal process.