South America

Uruguay hit with 12.5% US tariff over forced-labor import rules

Uruguay has been placed in the highest tier of new US tariffs, facing a 12.5% levy on its exports after Washington cited the absence of an explicit ban on goods made with forced labor. The rate is up from 10% previously.

Shipping containers loaded at an export port
Shipping containers loaded at an export portPhoto: Markus Spiske / Pexels
MercoPress2 h ago

Uruguay has been placed in the highest tier of the United States' new tariff scheme, facing an additional 12.5% levy on its exports after Washington said the country lacks an explicit ban on importing goods made with forced labor. The new rate, which took effect this week, is up from the 10% that had applied since February.

Uruguay's foreign ministry said it was weighing the implications of the measure, which adds to a broader wave of tariffs the Trump administration has imposed on trading partners over forced-labor concerns. The case illustrates how international trade rules are increasingly being tied to labor standards rather than just tariffs or quotas.

Exporters in Uruguay now face higher costs selling into the US market, and officials may seek to negotiate a lower rate or clarify the country's labor rules to avoid the higher tier. Other Latin American exporters are watching closely to see whether similar levies could spread to their own goods.

TradeGeopoliticsSouth AmericaMercoPress
This article is an AI-curated summary of the original story published by MercoPress. The illustration is a stock photo by Markus Spiske from Pexels and is not from the original story.

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