The Office of the United States Trade Representative has proposed new tariffs of up to 12.5% on imports from 60 economies, citing their failure to effectively ban goods linked to forced labour in what it describes as a widening imbalance in global trade practices.
The determination, made under Section 301 of the Trade Act of 1974, found that all 60 economies had failed to adequately prohibit or enforce restrictions on imports connected to forced labour, creating what officials described as an “unlevel playing field” for American workers.
Under the proposal, economies that have implemented partial or full bans on forced labour-linked trade would face a 10% tariff rate, while all other economies would be subject to duties of up to 12.5%.
The U.S. Trade Representative also outlined a separate textile mechanism that would allow a limited volume of apparel and textile imports from selected economies to enter the U.S. at reduced tariff rates.
Written submissions on the proposal are due by 6 July, with public hearings scheduled for 7 July.
“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,” said U.S. Trade Representative Jamieson Greer.
“We will no longer tolerate this disparity.
"Some trading partners have taken initial steps to prevent the importation of forced labour goods, including through USMCA and commitments in Agreements on Reciprocal Trade. However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labour globally.”
The proposal follows a period of heightened legal and policy shifts in U.S. trade enforcement, after the Supreme Court earlier struck down most of President Donald Trump’s “Liberation Day” tariffs, prompting him to impose 10% global baseline duties under Section 122, which are also set to expire in July.
Section 301 of the Trade Act authorises the president to impose tariffs in response to unfair foreign trade practices that harm U.S. commerce.
The proposal is expected to intensify tensions between Washington and several major trading partners, including China, the European Union and Japan, as global trade policy faces renewed scrutiny over labour standards and supply chain ethics.
