U.S. proposes tariffs of up to 12.5% on 60 economies over forced labor trade practices
10 reported
The Office of the U.S. Trade Representative has proposed additional tariffs of up to 12.5% on imports from 60 economies, citing their failure to ban goods made with forced labor. The determination, made under Section 301 of the Trade Act of 1974, found that all 60 countries have failed to impose or effectively enforce a prohibition on forced labor-related imports. USTR has proposed a 10% duty rate for economies that have adopted a full or partial prohibition on forced labor trade, and 12.5% for all other economies. The proposal also includes a separate textile mechanism allowing a certain volume of apparel and textile imports from some economies to enter at reduced rates. Written comments are due by July 6, with public hearings scheduled on July 7. The proposal follows the U.S. Supreme Court striking down most of President Donald Trump’s “Liberation Day” tariffs earlier this year, prompting him to impose 10% global baseline duties under Section 122, which are set to expire in July. China opposes “all forms of unilateral restrictions,” a spokesperson for China’s commerce ministry said, while an EU spokesperson described the reasoning as “unjustified.”
What’s reported
The Office of the U.S. Trade Representative proposed additional tariffs of up to 12.5% on imports from 60 economies.
The determination was made under Section 301 of the Trade Act of 1974.
USTR proposed a 10% duty rate for economies with a full or partial prohibition on forced labor trade, and 12.5% for all other economies.
A separate textile mechanism would allow a certain volume of apparel and textile imports from some economies at reduced rates.
Written comments are due by July 6, with public hearings on July 7.
The proposal comes after the U.S. Supreme Court struck down most of President Donald Trump’s “Liberation Day” tariffs earlier this year.
Trump imposed 10% global baseline duties under Section 122, set to expire in July.
China opposes “all forms of unilateral restrictions,” a commerce ministry spokesperson said.
An EU spokesperson described the reasoning as “unjustified.”
The U.S. government also started seeking public comments on the scope of a new U.S.-China Board of Trade, agreed during a bilateral summit last month.
Key figures
Jamieson Greer, U.S. Trade Representative
Nick Marro, principal at Economist Intelligence Unit
Deborah Elms, head of trade policy at the Hinrich Foundation
A spokesperson for China’s commerce ministry (not named)
An EU spokesperson (not named)
Sources: CNBC
