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US proposes forced labor tariffs on 60 economies in sweeping trade action

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US proposes forced labor tariffs on 60 economies in sweeping trade action
US Trade PolicyForced Labor TariffsUSTR Investigation

The US Trade Representative has announced proposed duties of 10-12.5% on imports from 60 economies, accusing them of failing to ban goods made with forced labor. The action targets major trading partners including China, Vietnam, the UK, Canada, and Mexico, with exemptions for USMCA-compliant goods. The tariffs follow Supreme Court rulings against earlier Trump-era duties and will undergo public review before implementation.

The US Trade Representative has proposed new tariffs on goods from 60 economies, citing failures to combat forced labor in supply chains . This action follows earlier investigations and comes after the Supreme Court invalidated some of President Trump's previous tariffs.

The proposed duties range from 10% to 12.5% and will undergo a public comment period before finalization. The investigation assessed whether trading partners had enforced prohibitions against imports of forced labor goods, which the US alleges unfairly impacts American commerce. Fifty-four economies, including China, Vietnam, Taiwan, and the United Kingdom, were found to have not imposed or enforced such prohibitions. Six others-Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan-were deemed to have ineffective enforcement.

USTR Jamieson Greer stated that the failure of key trading partners to address forced labor imports is unacceptable. Certain exemptions apply, including goods from Canada and Mexico compliant with the USMCA, and specific textiles and apparel. The public can submit comments by July 6, after which hearings will be held. This move represents the administration's effort to reestablish a durable tariff framework after recent legal challenges

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US Trade Policy Forced Labor Tariffs USTR Investigation Trump Administration Import Restrictions China Tariffs Supply Chains

 

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