The United States has proposed new tariffs of up to 12.5 per cent on imports from 60 economies over their alleged failure to ban goods produced with forced labour.
The move, which would affect major trading partners including China, the European Union, and Japan, represents a broad escalation in trade enforcement.
The determination, made under Section 301 of the Trade Act of 1974, concluded that all 60 economies have not adequately imposed or enforced bans on forced-labour-linked imports, creating what it described as an “unlevel playing field” for U.S. workers.
Under the proposal, a 10 per cent tariff would apply to economies that have implemented full or partial prohibitions on forced labour-related trade, while a 12.5 per cent duty would be imposed on all other economies.
The Office of the U.S. Trade Representative also proposed a separate textile mechanism that would permit a specified volume of apparel and textile imports from selected economies to enter the United States at reduced tariff rates.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” said U.S. Trade Representative Jamieson Greer. “We will no longer tolerate this disparity.”
The proposal follows the U.S. Supreme Court’s decision earlier this year to strike down most of President Donald Trump’s “Liberation Day” tariffs.
In response, he introduced a 10 per cent global baseline duty under Section 122, which is also scheduled to expire in July.
