WASHINGTON: The United States Trade Representative (USTR) proposed new import duties on 60 economies including Pakistan, India, China and the European Union citing their failure to combat forced labour in global supply chains, as the Trump administration advances its tariff agenda following recent legal setbacks.
The USTR proposed duties ranging from 10 percent to 12.5 percent on products imported from the targeted economies. The agency will review public comments during the consultation period before issuing its final decision.
Washington launched trade investigations months ago into dozens of trading partners including China, the EU and Japan to determine whether they enforced prohibitions on goods produced with forced labour and whether that failure harmed US commerce.
The USTR concluded that 54 of the 60 investigated economies “failed to impose and effectively enforce a forced labour import prohibition.” This group includes China, Vietnam, Taiwan, the United Kingdom and India.
A separate group of six economies Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan earned a slightly different finding: officials determined they did not effectively enforce existing prohibitions rather than lacking them entirely.
How Much Will the Tariffs Be?
The US Trade Representative levied a tariff of 10 percent on goods imported from Canada, Ecuador, European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Great Britain.
The other 45 economies being looked into will have to pay a higher rate of 12.5 percent additional tariff.
USTR Jamieson Greer defended the move forcefully. “The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” he said. “This creates a dynamic where American workers must compete globally on an unlevel playing field. We will no longer tolerate this disparity.”
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Greer added that every US trading partner “must do more to ensure that trade does not perversely encourage and entrench forced labour globally.”
Is There an Exclusion for Anything?
In terms of exemptions from the imposed taxes, products in the following groups fall under them: beef, coffee, and certain fruits and nuts. Moreover, goods from Canada and Mexico meeting the USMCA agreement standards and textiles are also exempted.
What Happens Next?
The public may submit written comments to the USTR by July 6. The agency plans to hold hearings thereafter before reaching a final decision on whether to implement the duties. The announcement carries added urgency given that a temporary 10 percent tariff imposed on February 20 expires on July 24. The US Supreme Court struck down that measure, which the Trump administration had levied under the International Emergency Economic Powers Act, forcing the administration to pursue alternative legal routes for its broader tariff strategy.
Pakistan now faces potential 10 percent duties on its exports to the United States if the USTR finalises its proposal. Pakistani exporters particularly in the textile and apparel sector — will monitor the public comment process closely, as the outcome could directly affect the country’s access to one of its most important export markets.
