The United States has proposed new tariffs on imports from 60 economies after concluding that their failure to prevent trade in goods made with forced labour places an unfair burden on US commerce, according to the Office of the United States Trade Representative (USTR).
The proposal, announced on Tuesday, would impose additional duties of either 10% or 12.5% on imports from the affected economies following findings from a series of Section 301 investigations launched earlier this year.
Under the plan, 15 economies that have laws banning imports made with forced labour but are deemed to enforce them inadequately would face tariffs of 10%. The remaining economies, which the USTR says do not have sufficient prohibitions against such imports, would be subject to a 12.5% tariff. Countries listed include Canada, the European Union, Mexico, the United Kingdom, India, Japan, South Korea and Switzerland.
The Trump administration said the proposed measures follow findings that the countries’ actions and policies regarding forced-labour imports are “unreasonable” and restrict US trade. The move comes after the US Supreme Court struck down a previous set of broad tariffs imposed under emergency powers, prompting the administration to pursue new trade actions through Section 301 investigations.
Certain products would be exempt from the proposed duties, including energy products, rare earth minerals, pharmaceuticals and selected agricultural and industrial goods. The USTR is also considering a separate textile tariff mechanism, although details have not yet been released.
The agency has opened a public consultation period on the proposal through July 6 and plans to hold a public hearing on July 7 before making a final decision.
Faridah Abdulkadiri