U.S. proposes tariffs up to 12.5% on 60 economies over forced labor trade practices
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, which the source reports authorizes the president to impose levies to counter unfair foreign trade practices. 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 others. A separate textile mechanism would allow reduced rates on a certain volume of apparel and textile imports from some economies. Written comments are due by July 6, with public hearings scheduled on July 7. U.S. Trade Representative Jamieson Greer stated the failure of trading partners to address forced labor imports creates an unlevel playing field for American workers. China and the European Union both criticized the tariffs, with a Chinese commerce ministry spokesperson opposing unilateral restrictions and an EU spokesperson describing the reasoning as unjustified. The source notes the proposed tariffs may be softened by significant exemptions on electronics and AI-related goods, and that the U.S. government separately began seeking public comments on a new U.S.-China Board of Trade that could lead to reduced tariff rates on both sides.
What’s reported
USTR proposed additional tariffs up to 12.5% on imports from 60 economies under Section 301.
Two-tier rates: 10% for economies with full/partial forced labor trade prohibition, 12.5% for others.
A separate textile mechanism would allow reduced rates on certain apparel and textile imports.
Written comments due July 6; public hearings on July 7.
U.S. Trade Representative Jamieson Greer said the disparity is unacceptable.
China's commerce ministry spokesperson said China opposes all forms of unilateral restrictions and urged Washington and Beijing to meet each other halfway.
An EU spokesperson described the tariff reasoning as unjustified and noted the EU is on track to implement Joint Statement tariff commitments by end of June.
The Supreme Court struck down most of President Donald Trump's earlier "Liberation Day" tariffs; 10% global baseline duties under Section 122 are set to expire in July.
Tariff impact may be softened by exemptions on electronics and AI-related goods, per Nick Marro of the Economist Intelligence Unit.
The U.S. government started seeking public comments on a new U.S.-China Board of Trade, agreed during a bilateral summit last month.
Open questions
The specific list of the 60 economies affected is not provided in the source article.
The exact details of the textile mechanism and which economies it covers are not fully specified.
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
China commerce ministry spokesperson (unnamed)
EU spokesperson (unnamed)
Evelyn Cheng – CNBC reporter (contributed)
Sources: CNBC
