U.S. proposes tariffs up to 12.5% on 60 economies over forced labor trade
8 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 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. A separate textile mechanism would allow 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. China’s commerce ministry spokesperson opposed “all forms of unilateral restrictions,” while an EU spokesperson described the reasoning as “unjustified.”
What’s reported
USTR 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.
A 10% duty rate is proposed for economies with a full or partial forced labor trade prohibition; 12.5% for all others.
A separate textile mechanism would allow reduced rates on some apparel and textile imports.
Written comments are due by July 6; public hearings are scheduled on July 7.
The proposal comes after the U.S. Supreme Court struck down most of President Trump’s “Liberation Day” tariffs earlier this year.
China’s commerce ministry spokesperson opposed “all forms of unilateral restrictions.”
An EU spokesperson described the reasoning as “unjustified.”
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
Spokesperson for China’s commerce ministry (unnamed)
EU spokesperson (unnamed)
Sources: CNBC
