U.S. Trade Representative Proposes Tariffs Of Up To 12.5% On 60 Economies Over Forced Labor Failures

The Office of the U.S. Trade Representative has proposed additional tariffs of up to 12.5% on imports from 60 economies linked to forced labor trade practices.

The sweeping action targets trading partners that have failed to ban goods made with forced labor, including China, the European Union, and Japan.

The determination was made under Section 301 of the Trade Act of 1974, which governs unfair foreign trade practices affecting American commerce.

USTR found that all 60 countries have failed to impose or effectively enforce a prohibition on forced labor-related imports, creating what it called an “unlevel playing field” for American workers.

The trade authority proposed a 10% duty rate for economies that have adopted a full or partial prohibition on forced labor trade practices.

Economies that have taken no such steps would face a higher rate of 12.5% under the proposed framework outlined by the USTR.

The trade authority also proposed a separate textile mechanism that would allow a certain volume of apparel and textile imports from some economies to enter the U.S. at reduced rates.

U.S. Trade Representative Jamieson Greer issued a direct statement condemning the widespread failure of trading partners to act on the issue.

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

“We will no longer tolerate this disparity. Some trading partners have taken initial steps to prevent the importation of forced labor 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 labor globally,” Greer added.

The proposal represents one of the broadest trade enforcement actions taken by the current administration, spanning economies across multiple continents and major trade blocs.