US proposes new tariffs on 60 economies, including Pakistan, over failure to act on forced labour

Coverage Comparison

Reuters reports that the US Trade Representative (USTR) has proposed tariffs of up to 12.5 percent on imports from 60 economies, after investigations found these countries had not done enough to prevent goods made with forced labor from entering their markets. The announcement, made on June 2, marks a shift in the Trump administration's approach to tariffs after the Supreme Court in February ruled against using emergency powers for such purposes.

Al Jazeera and Dawn, which cover similar ground, note that the USTR plans to hold public comment periods and hearings before finalizing the duties. The list includes both developing nations and several key US allies, such as Britain, Canada, and the European Union—though the EU itself represents multiple economies.

The legal basis for the new duties is Section 301 of the Trade Act of 1974, a provision that allows the US to investigate foreign practices that are deemed "unjustifiable," "unreasonable," or discriminatory against American businesses. The USTR argues that the failure of trading partners to enforce laws against forced labor creates an uneven playing field for US workers.

Key Claims

• The United States has proposed tariffs ranging from 10 percent to 12.5 percent on imports from 60 economies. All three sources report this.
• Investigations were launched into each economy's actions against forced labor, leading to the proposed duties.
• The USTR has proposed exemptions for some products, and a public comment period will precede a final decision.
• USTR Jamieson Greer stated, as reported by all sources, that the failure of trading partners to address forced labor is 'unacceptable' and creates an 'unlevel playing field' for American workers.
• The European Union considers the tariffs 'unjustified' and is implementing its own forced-labor import ban, as reported by one outlet.
• China's foreign ministry spokesperson, He Yongqian, denounced the US move as 'unilateral restrictive measures' under the pretext of 'forced labor,' per a single source.
• The US Supreme Court struck down President Trump's earlier use of an emergency powers law for tariffs, prompting this new approach.
• The tariffs may accelerate the reorientation of global trade away from the US, as businesses shift supply chains, according to one source.

Perspectives

US Administration: The USTR maintains that the tariffs are a targeted, legally sound response to failures by trading partners to prevent forced labor products from entering their markets. Officials emphasize the impact on American workers.

EU and Other Targeted Nations: European officials have called the findings 'utterly absurd,' and the EU is proceeding with its own measures to regulate forced-labor imports. Other governments, such as Canada and Mexico, have not yet issued official responses.

China and Others: China's foreign ministry has labeled the US action a unilateral restrictive measure under a false pretext, signaling a diplomatic and trade conflict.

Trade Analysts: Some analysts suggest the tariffs may push countries to seek trade agreements among themselves, as they reduce reliance on the US market. They point to recent EU-Mercosur and EU-India deals as examples of how nations are already looking beyond Washington.

Conclusion

The USTR proposal marks a renewed effort to apply tariffs after a Supreme Court loss. While awaiting comments and hearings, the move has already drawn sharp reactions from around the world. The final duties and their economic impact will depend on the public climate and any legal challenges that may follow.