The United States has announced a proposal for new tariffs of up to 12.5 per cent on imports from sixty countries, citing failures in addressing the issue of forced labour. This initiative by the Office of the United States Trade Representative (USTR) follows a Section 301 unfair trade practices investigation and aims to reinstate tariffs previously established during the Trump administration. These tariffs had been nullified by a US Supreme Court ruling in February.

The USTR has highlighted that products produced under conditions of forced labour are extensively woven into global supply chains, despite existing legal prohibitions. The proposal has been met with denials from various trading partners, who challenge the validity of the US assertions.

According to the proposal released on Tuesday, additional tariffs of 10 per cent would be imposed on imports from nations such as Canada, Ecuador, and members of the European Union. In contrast, an increased duty of 12.5 per cent would be applied to a further forty-five countries, including China, India, and Nigeria, among others. The USTR stated these countries have not adequately addressed the import of goods connected to forced labour.

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China, facing the proposed 12.5 per cent tariffs, has categorically opposed unilateral tariffs, asserting that there is no forced labour within its borders. India has also commented on the tariffs, noting ongoing engagement with US officials concerning the Section 301 investigation and asserting that the proposed tariffs are not finalised.

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