The US is imposing the new tariff rate on the grounds that, according to the Office of the United States Trade Representative (USTR), Norway and other countries do not have adequate prohibitions on the import of goods produced using forced labour.

‘We strongly disagree with the US’s unilateral use of tariffs against Norway and other countries. We also disagree with the justification for this new tariff rate given by the US. We have made our views clear to the US authorities. We believe there are no grounds to impose this tariff on Norway, because we already have clear rules in place to prevent trade in products made with forced labour,’ said Minister of Foreign Affairs Espen Barth Eide.

The new additional tariff rate follows an investigation under Section 301 of the US Trade Act into forced labour in global supply chains. As a result of this investigation, the US authorities have determined that goods from Norway and several dozen other countries will be subject to an additional tariff rate of 12.5 per cent. The new tariff replaces the existing global additional tariff of 10 per cent on imports into the US, which expired on 24 July.

‘Norway fully agrees that it is crucial to combat forced labour globally. Norway was among the first countries to introduce clear due diligence rules specifically intended to prevent trade in products made with forced labour or involving other serious human rights violations. The justification for the new tariff given by the US is therefore based on an entirely incorrect foundation,’ said Mr Eide.

The US has imposed a tariff rate of 10 per cent on the EU. According to the Norwegian Government there is no reason why Norway and the EU should be subject to different tariff rates.

‘We have made it clear to the US authorities that Norwegian and European producers must be treated equally. Under the EEA Agreement, Norway is to implement exactly the same regulations by the same time as the EU, at the latest. Norway will therefore introduce the same prohibition against products made with forced labour as the EU by, at the latest, the same time as the prohibition enters into force in the EU. It therefore makes no sense for the US to impose different tariff rates on Norway and the EU today,’ said the Foreign Minister.

The EU has adopted a regulation prohibiting products made with forced labour that is will enter into force in December 2027. The Norwegian authorities have explained to the US that Norway will implement the regulation when it enters into force in the EU at the latest.

‘Norway will continue to communicate its opposition to this tariff rate to the US authorities. I sent a letter to US Trade Representative Jamieson Greer this week in which I made it clear that Norway will be introducing the same prohibition as the EU, by at the latest the same time as it enters into force in the EU,’ said Mr Eide.

Forced labour is prohibited in Norway, and since 2022, Norwegian companies have been required under the Transparency Act to carry out due diligence to identify and assess actual and potential adverse impacts on fundamental human rights and decent working conditions, and to implement measures to cease, prevent or mitigate such adverse impacts, including addressing the issue of forced labour.

‘Today’s decision has serious implications for Norwegian export companies. The US is a vital market, particularly for parts of the seafood industry. The Government is working to ensure that Norwegian exporters are subject to conditions that are at least as favourable as those enjoyed by competitors from other countries,’ said the Foreign Minister.

The US is also conducting a Section 301 investigation into structural industrial overcapacity. The investigation concerns a number of countries, including Norway and the EU. The US authorities are expected to issue their recommendation in this case in a few weeks. It is possible that this may lead to further tariff increases.

The Government will invite the social partners and industry to a meeting on the situation as soon as possible.

The additional tariff resulting from the forced labour investigation applies to all goods that are not subject to sectoral tariffs imposed by the US authorities or that are specifically exempt. An estimated 67 per cent of US imports from Norway are subject to the additional tariff of 12.5 per cent.

(This is a translation of the original text in Norwegian)