Key facts
- Trump administration proposed tariffs of up to 12.5% on imports from 60 countries.
- Tariffs are proposed due to countries failing to curb trade in goods made with forced labor.
- The proposal stems from a Section 301 unfair trade practices investigation.
- The U.S. Trade Representative's office will accept public comments through July 6.
- Numerous exemptions are included, such as for crude oil and certain agricultural goods.
The Trump administration has proposed tariffs of up to 12.5% on imports from 60 countries, asserting that these nations have failed to curb trade in goods produced with forced labor. This proposal, issued by the U.S. Trade Representative's office, is part of a Section 301 unfair trade practices investigation. Despite laws banning products of forced labor, they remain embedded in global supply chains. Business leaders expressed concern that the U.S. move adds confusion for companies trying to police product origins. Helene de Rengerve of Human Rights Watch noted that forced labor is a global issue, occurring in every sector, and questioned the effectiveness of singling out countries based on trade volumes. The USTR proposed 10% additional duties on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan, and Britain, while the remaining 45 countries, including China, India, Nigeria, Japan, South Korea, Vietnam, Australia, and New Zealand, would face an additional 12.5% duties. U.S. Trade Representative Jamieson Greer stated that the failure of major trading partners to address the importation of goods made with forced labor is unacceptable and creates unfair competition for U.S. workers. Public comments on the proposed tariffs will be accepted until July 6, with a hearing scheduled for July 7. The proposal includes exemptions for goods already subject to Section 232 national security tariffs, North American trade deal compliant imports from Canada and Mexico, and a list of specific product exemptions including crude oil, petroleum products, rare earths, beef, coffee, and pharmaceuticals. Canadian Prime Minister Mark Carney noted that Canadian products are largely protected by exemptions. The European Commission deemed the tariffs unjustified, reiterating its commitment to a trade deal with Washington. Bernd Lange, chair of the European Parliament's trade committee, called the U.S. investigation results 'utterly absurd' given an upcoming EU law to ban imports of forced labor products. French Finance Minister Roland Lescure affirmed commitment to ratifying the trade accord. Britain stated it is in regular talks with the U.S. and taking action against forced labor. Taiwan expressed confidence in securing preferential treatment, while Beijing opposed unilateral tariffs and denied forced labor in China. India stated it is engaged with Washington on the proceedings. The International Chamber of Commerce expressed concern that the U.S. forced labor law could become a global template, potentially leading to impounded shipments and requiring companies to prove no forced labor in their supply chains. The extensive list of exemptions suggests sensitivity to potential impacts on the cost of living for food and other goods with known forced labor risks.