US Imposes 12.5% Forced-Labor Tariff on Saudi Arabia

The Office of the US Trade Representative imposed new Section 301 tariffs of 10-12.5% on imports from 60 economies, including Saudi Arabia, after determining the countries had 'failed to impose and effectively enforce a forced labor import prohibition.' The action, part of a broader wave of Trump administration tariffs covering economies representing 99% of US imports, added a new economic headwind for Saudi Arabia as it was already absorbing an oil-revenue shortfall from the Iran war and Red Sea shipping disruptions.