US proposes additional 10% tariffs on goods made with forced labor

The Trump administration has proposed imposing additional tariffs of 10% or 12.5% on imports from 60 economies. This move targets countries that have not demonstrated success in curbing trade involving goods produced through forced labor. The proposal, which emerged on Tuesday, is part of an ongoing effort to address concerns about international labor practices.

According to the USTR, 54 economies have failed to adopt and effectively enforce bans on imports of goods made with forced labor. Among these are China, Vietnam, Taiwan, and the United Kingdom. Additionally, six economies, including Canada, Ecuador, Indonesia, Mexico, Pakistan, and the European Union, were assessed as not adequately enforcing such prohibitions.

Trade Representative Jamieson Greer stated that the failure of key trading partners to address imports of goods made with forced labor is unacceptable, creating an uneven playing field for American workers. The proposed tariffs include various exemptions, such as for beef, coffee, and certain fruits and nuts. Goods from Canada and Mexico that meet the criteria of the North American trade agreement will also be exempt, as will some textiles and apparel.

These new tariffs are not immediately effective and are subject to public comment and an approval process. The investigation into alleged failures to prevent the import of goods made with forced labor was conducted under the Trade Act of 1974. This strategy could allow President Trump to bypass limitations on his tariff policies previously decided by the Supreme Court.

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The failure of our most important trading partners to address imports of goods made with forced labor is unacceptable. It creates a situation where American workers are forced to compete globally on an uneven playing field.