US Proposes New Tariffs on 60 Economies Over Forced Labour Concerns

The Trump administration announced plans to impose additional duties of 10% or 12.5% on imports from 60 economies after determining their failure to curb trade in goods made with forced labor as unreasonable and restricting US commerce.

This proposal, released by the U.S. Trade Representative’s office, is part of efforts to rebuild emergency tariffs struck down by a Supreme Court decision in February. The USTR stated it would impose 10% duties related to the forced labor investigation on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Britain.

The remaining 45 countries that were investigated would face additional duties of 12.5%. US Trade Representative Jamieson Greer stated in a statement that the failure of major trading partners to address importation of goods made with forced labor was unacceptable, creating an uneven playing field for American workers.

The USTR also proposed a textile mechanism allowing certain volumes of apparel and textile imports into the US at reduced tariff rates. The announcement comes ahead of the July 24 expiration of a 10% temporary tariff imposed by the Trump administration on February 20.

On Monday, the USTR proposed a 25% duty on many Brazilian goods as a result of a Section 301 investigation into Brazil’s digital trade practices and preferential tariffs. The agency is also expected to soon unveil findings from another major Section 301 probe into excess industrial capacity in 16 trading partners, including China.

The USTR said it would exempt several products such as energy, rare earths and certain other metals, beef, coffee, fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts from the tariffs. The agency will accept public comments on the proposed tariffs and remedies through July 6 with a public hearing scheduled for July 7.