The Office of the U.S. Trade Representative (USTR) has proposed imposing additional tariffs of up to 12.5% on imports from 60 economies, including Pakistan, citing their failure to prohibit or effectively enforce bans on goods produced with forced labor.
The move, announced under Section 301 of the Trade Act of 1974, is aimed at addressing what U.S. officials describe as unfair trade practices that disadvantage American workers.
According to the USTR, all 60 economies reviewed failed to adequately prevent the importation of goods linked to forced labor.
Countries and regions affected include China, Vietnam, Taiwan, India, and the United Kingdom. Meanwhile, Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan were specifically identified as having insufficient enforcement of existing prohibitions.
Under the proposal, economies that have adopted full or partial restrictions on forced labor-related trade would face a 10% tariff, while those lacking such measures would be subject to a 12.5% duty.
The USTR has also suggested a separate mechanism for textile and apparel imports, allowing limited quantities from certain economies to enter the U.S. at reduced tariff rates.
Written comments on the proposal are due by July 6, with public hearings scheduled for July 7. U.S. Trade Representative Jamieson Greer said the United States would no longer tolerate trade disparities that place American workers at a competitive disadvantage.
The proposal follows the Supreme Court’s decision to strike down most of President Donald Trump’s earlier “Liberation Day” tariffs.
