The Trump administration has proposed imposing additional duties of 10 percent or 12.5 percent on imports from 60 economies, including Pakistan, after determining that these countries have failed to curb trade in goods made with forced labor, which the US considers unreasonable and a restriction on American commerce.
Details of the Proposed Tariffs
The proposal, announced on Tuesday by the US Trade Representative (USTR) office, stems from a Section 301 unfair trade practices investigation. The USTR stated that it would impose 10 percent duties on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan, and Britain. For the remaining 45 countries under investigation, an additional 12.5 percent duty is proposed.
US Trade Representative Jamieson Greer emphasized that the failure of major trading partners to address forced labor imports is unacceptable, as it creates an unlevel playing field for American workers.
Textile Mechanism and Exemptions
The USTR also proposed a textile mechanism allowing a certain volume of apparel and textile imports to enter the US at reduced tariff rates, though specific duties and volumes were not disclosed. Additionally, exemptions from the tariffs include products such as energy, rare earths, certain metals, beef, coffee, fruits, vegetables, pharmaceuticals, organic chemicals, and aircraft parts.
This announcement comes ahead of the July 24 expiration of a 10 percent temporary tariff imposed on February 20, the day the Supreme Court struck down President Trump's tariffs under the International Emergency Economic Powers Act.
Broader Trade Actions
Earlier this week, the USTR proposed a 25 percent duty on many Brazilian goods following a Section 301 investigation into Brazil's digital trade practices. The trade agency is also expected to release findings from another major Section 301 probe into excess industrial capacity in 16 trading partners, including China.
The USTR will accept public comments on the proposed tariffs and remedies until July 6, with a public hearing scheduled for July 7.
