The United States has proposed new tariffs of up to 12.5% on imports from around 60 countries, including Pakistan, citing concerns that these trading partners have not taken sufficient action against goods linked to forced labour.
The move is intended to support earlier emergency tariff measures introduced by President Donald Trump, which were later invalidated by a U.S. Supreme Court ruling in February.
Although forced labour-linked products are widely acknowledged as a global supply chain issue, the U.S. claims many partners are not doing enough to prevent such imports. European officials, however, strongly dispute the assessment, with some calling the findings “utterly absurd” and pointing to existing regional laws targeting forced labour goods.
Under the proposal, a 10% additional tariff would apply to imports from countries including Canada, the European Union, the United Kingdom, Mexico, Pakistan, Bangladesh, India, Japan, South Korea, Australia, and others. The USTR said these countries already have partial systems or frameworks in place to address the issue.
A higher rate of 12.5% would be imposed on goods from the remaining 45 countries under review, including China, Vietnam, Nigeria, Indonesia, Malaysia, Argentina, and New Zealand.
U.S. Trade Representative Jamieson Greer defended the proposal, saying that failure by major trading partners to stop imports tied to forced labour creates unfair competition and disadvantages American workers.
The USTR has opened a consultation period, allowing public comments until July 6, followed by a hearing scheduled for July 7.
The announcement comes ahead of the July 24 expiry of a temporary 10% tariff introduced in February, following the Supreme Court’s decision striking down earlier tariff measures under emergency economic powers legislation.
The European Commission has rejected the new tariffs, saying they are unjustified and reaffirming its commitment to a previously agreed trade framework with Washington. EU officials argue that their own forced labour ban, set to take effect in 2027, demonstrates progress, though the USTR report said key elements are still missing.
European Parliament trade committee chair Bernd Lange called the U.S. findings “utterly absurd,” suggesting the investigation may have been designed to justify tariffs rather than assess compliance. However, he also noted that it remains unclear whether the proposed duties would exceed existing trade terms agreed last July.
France urged restraint, saying it still aims to implement the trade agreement with the United States despite tensions. The United Kingdom said it is continuing discussions with Washington while maintaining its existing market access arrangements. Taiwan expressed optimism that the outcome would reflect prior understandings.
China rejected the accusations outright, saying it does not engage in forced labour and opposes unilateral tariff actions. India said it is engaging with U.S. authorities as discussions under the Section 301 process continue, stressing that the tariffs have not yet been finalised.
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