U.S. proposes fresh tariffs on 60 economies over forced labor trade practices

The Office of the U.S. Trade Representative has proposed additional tariffs of up to 12.5% on imports from 60 economies over their failure to ban goods made with forced labor, in a sweeping action that would hurt most trading partners, including China, the European Union and Japan.

The determination, made under Section 301 of the Trade Act of 1974, 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.

USTR has proposed a 10% duty rate for economies that have adopted a full or partial prohibition on forced labor trade, and 12.5% for all other economies.

The trade authority also proposed a separate textile mechanism that would allow for a certain volume of apparel and textile imports from some economies to enter the U.S. at reduced rates. Written comments for the proposal are due by July 6, with public hearings scheduled on July 7, according to the notice.

"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," said U.S. Trade Representative Jamieson Greer. "We will no longer tolerate this disparity."

The proposal comes after the U.S. Supreme Court struck down most of President Donald Trump's "Liberation Day" tariffs earlier this year, prompting him to to impose 10% global baseline duties under Section 122 — which are also set to expire in July .

The Section 301 authorizes the president to impose levies to counter unfair foreign trade practices harming U.S. commerce.

An EU spokesperson described the reasoning behind the latest barrage of U.S. tariffs as "unjustified."