U.S. proposes tariffs 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 was made under Section 301 of the Trade Act of 1974, finding that all 60 countries have not imposed or effectively enforced a prohibition on forced labor-related imports. USTR proposed a 10% duty rate for economies with a full or partial prohibition on forced labor trade, and 12.5% for all others. A separate textile mechanism was also proposed to allow reduced rates on certain apparel and textile imports. Written comments are due by July 6, with public hearings 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 opposed “all forms of unilateral restrictions,” while an EU spokesperson described the reasoning as “unjustified.”
What’s reported
USTR proposed tariffs of up to 12.5% on imports from 60 economies over forced labor trade practices.
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 prohibition on forced labor trade; 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 for 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 opposes “all forms of unilateral restrictions.”
An EU spokesperson described the reasoning as “unjustified.”
The impact may be softened by exemptions on electronics and AI-related goods, per Nick Marro of the Economist Intelligence Unit.
The U.S. government also began seeking public comments on a new U.S.-China Board of Trade.
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
