US Proposes New Tariffs on Pakistan, 59 Other Economies Over Forced Labour Concerns

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WASHINGTON: The United States Trade Representative (USTR) has proposed imposing new tariffs on imports from 60 economies, including Pakistan and India, citing their alleged failure to effectively prevent the import of goods produced through forced labour.

According to a government filing, the proposed duties range between 10% and 12.5% and will be subject to a public consultation process before a final decision is made.

The move is part of the Trump administration’s efforts to reshape its trade policy following recent legal challenges to its tariff framework. Earlier this year, Washington launched investigations into several major trading partners, including China, the European Union (EU), Japan, and others, to assess whether they had implemented and enforced measures to block imports linked to forced labour.

The USTR stated that 54 economies were found to have “failed to impose and effectively enforce a forced labour import prohibition.” This group includes China, Vietnam, Taiwan, the United Kingdom, and India.

An additional six economies — Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan — were determined to have inadequately enforced existing prohibitions against forced labour imports.

“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” said USTR Jamieson Greer in a statement. He argued that such practices place American workers at a competitive disadvantage in global markets and pledged stronger enforcement measures.

Under the proposal, imports from Pakistan, Canada, Ecuador, the EU, Indonesia, Mexico, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan, and the United Kingdom would face a 10% tariff. The remaining 45 economies under investigation could be subject to additional duties of up to 12.5%.

Several exemptions have been included in the proposal, covering products such as beef, coffee, and selected fruits and nuts. Goods traded under the North American free trade framework between Canada and Mexico, as well as certain textile and apparel products, would also remain exempt.

The USTR has invited written comments from stakeholders until July 6, after which public hearings will be conducted before any final determination is made.

The announcement comes ahead of the July 24 expiration of a temporary 10% tariff introduced by the Trump administration on February 20, following a Supreme Court ruling that struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

If approved, the new measures could have significant implications for global trade flows and export-oriented economies, including Pakistan, which relies heavily on textile and apparel exports to the US market.

By AFP & Reuters

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