U.S. proposes tariffs up to 12.5% on 60 economies over forced labor trade
11 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 under Section 301 of the Trade Act of 1974 found that all 60 countries have not imposed or effectively enforced a prohibition on forced labor-related imports, creating what it called an "unlevel playing field" for American workers. 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 at reduced rates. 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, and 10% global baseline duties under Section 122 set to expire in July. China opposes "all forms of unilateral restrictions," while an EU spokesperson described the reasoning as "unjustified." The impact may be softened by significant exemptions on electronics and AI-related goods, according to analysts.
What’s reported
USTR proposed tariffs 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 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 due July 6; public hearings scheduled July 7.
The proposal follows the Supreme Court striking down most of Trump's "Liberation Day" tariffs.
10% global baseline duties under Section 122 are set to expire in July.
China opposes "all forms of unilateral restrictions" and called for bilateral stability.
An EU spokesperson called the reasoning "unjustified" and noted EU tariff commitments by end of June.
Exemptions on electronics and AI-related goods may soften the impact, per analyst Nick Marro.
The U.S. also began seeking public comments on a new U.S.-China Board of Trade agreed 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
Spokesperson for China's commerce ministry (unnamed)
EU spokesperson (unnamed)
Sources: CNBC
