U.S. proposes new tariffs on 60 economies over forced labor concerns
The United States Trade Representative (USTR) has proposed imposing additional tariffs on imports from 60 economies after determining that they have failed to adequately prohibit or enforce restrictions on goods produced with forced labor, Qazinform News Agency correspondent reports.
The decision follows investigations launched in March under Section 301 of the Trade Act of 1974, which allows the U.S. government to respond to foreign policies and practices deemed harmful to American commerce. USTR concluded that the economies under review either lack effective bans on imports made with forced labor or have failed to properly enforce existing measures.
U.S. Trade Representative Jamieson Greer said the failure of major trading partners to address forced labor in supply chains places American workers at a competitive disadvantage by allowing lower-cost goods produced under unfair conditions to enter global markets.
As a result, USTR has proposed additional duties on products imported from the affected economies. Countries and jurisdictions that have adopted a full or partial forced labor import prohibition, or have committed to implementing one through trade agreements with the United States, would face a proposed 10% tariff. All other economies would be subject to a proposed 12.5% rate.
The agency also outlined a separate mechanism that would allow a limited volume of apparel and textile imports from certain economies to enter the United States at reduced tariff rates.
Among the economies cited in the investigations are China, Japan, the United Kingdom, Australia, Kazakhstan, South Korea, India, Brazil, Saudi Arabia, Switzerland and dozens of others. Canada, Mexico, the European Union, Indonesia, Pakistan and Ecuador were found to have prohibitions in place but were deemed to have failed to enforce them effectively.
According to USTR, the absence or weak enforcement of forced labor import bans undermines efforts to eliminate forced labor globally, distorts competition by reducing production costs for offending firms, and disadvantages companies that comply with labor standards.
The proposed measures are now open for public consultation. Requests to participate in public hearings must be submitted by June 22, while written comments will be accepted until July 6. USTR plans to hold hearings on the proposal on July 7 before making a final decision.
Earlier, Qazinform News Agency reported that Trump threatened higher tariffs on countries that ‘play games’.