WASHINGTON – US has imposed new tariffs on 60 trading partners, including Pakistan, for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.
The new tariffs will replace an expiring global duty rolled out by US President Donald Trump earlier this year.
The levies will take effect from today (Friday) and they range from 10 per cent to 12.5pc.
Ambassador Jamieson Greer took the final action at President Donald Trump’s direction, under Section 301 of the Trade Act of 1974.
“Today’s action comes after the Office of the United States Trade Representative’s (USTR) investigations, which included two rounds of public hearings, more than 2,100 public comments, and engagement with our trading partners to remedy these longstanding concerns,” read the official statement.
“President Trump recognizes that decades of moral suasion have not eradicated forced labor from global supply chains. The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same,” said Ambassador Greer. “Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere. I am encouraged by the trading partners who have moved quickly to adopt forced labor import prohibitions, and look forward to ensuring their effective enforcement.”
10 percent tariff has been imposed on Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom;
“10 percent or 12.5 percent, net of Most-Favored-Nation (MFN) rate is the appropriate rate of Section 301 duties for certain products of the European Union, Taiwan, Japan, Korea, and Switzerland that are not otherwise exempted, as explained in greater detail in the Federal Register Notice; and 12.5 percent is the appropriate rate of Section 301 duty for all other investigated economies,” read the official statement.
The U.S. Trade Representative said certain products will be exempt from the tariffs under the direction of the president. The exemptions apply to raw materials that could face domestic supply shortages if tariffs were imposed, as well as products that could cause broader economic disruptions. They also cover goods that cannot be produced in sufficient quantities or at reasonable prices in the United States, or sourced from alternative suppliers.
In addition, the exemptions include certain products from Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Jordan, Malaysia, Switzerland, Taiwan and the United Kingdom. According to the U.S. Trade Representative, the measure is intended to encourage those economies to fulfill commitments related to forced labor import prohibitions or to adopt and effectively enforce such restrictions. The exemptions also apply to products for which the tariffs are not expected to contribute substantially to addressing the acts, policies and practices found to be actionable in the investigations.
