US proposes new tariffs on 60 countries over forced labor goods

The United States is proposing significant new tariffs on goods from 60 countries, including India, citing concerns over forced labor in their production. The U.S. Trade Representative (USTR) announced the potential for additional duties of 10% or 12.5%, depending on whether the targeted economies have existing prohibitions or agreements against such practices.

This move, authorized under Section 301 of the Trade Act of 1974, targets what the USTR deems "unreasonable" acts, policies, and practices that burden U.S. commerce. The USTR specifically flagged 6 economies, including the European Union, Pakistan, and Canada, for failing to effectively enforce prohibitions on goods made with forced labor.

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For economies that impose a forced labour import prohibition, that have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade, or economies that have imposed a partial regime with the effect of preventing the importation of certain forced labor goods, the U.S. Trade Representative proposes 10% as the rate of additional duties. For all other economies, the U.S. Trade Representative proposes 12.5% as the rate of additional duty. The U.S. Trade Representative also proposes a textile mechanism that would allow for a certain volume of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate

Ambassador Jamieson Greer stated that the failure of key trading partners to address this issue is "unacceptable" and creates an "unlevel playing field" for American workers. The proposed tariffs come as Indian negotiators are reportedly preparing to focus on trade discussions.

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The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.