WASHINGTON: The United States on Thursday announced new tariffs on imports from 60 trading partners, including Pakistan, India, China and the European Union, citing concerns over forced labour practices as it replaces a temporary global tariff introduced earlier this year by President Donald Trump.
The new duties, which take effect on Friday, range between 10 per cent and 12.5pc.
US Trade Representative Jamieson Greer said the measures were aimed at encouraging trading partners to strengthen enforcement against forced labour.
“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,” Greer said.
He added earlier that the targeted economies account for the majority of US trade.
The latest tariffs follow a Supreme Court ruling in February that struck down several of Trump’s earlier duties, limiting the administration’s ability to impose sweeping tariffs under the legal authorities it had previously relied upon.
In response, the administration used alternative powers to introduce a temporary 10pc tariff on imports for 150 days, a measure that expires on Friday. The new tariff regime, first proposed in June after months of investigation, is intended to replace it and is expected to be more resilient against legal challenges.
Under the final decision, the United States will apply a 10pc tariff on imports from Argentina, Bangladesh, Britain, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka and Trinidad and Tobago, among others.
Meanwhile, imports from the European Union, Taiwan, Japan, South Korea and Switzerland will face tariff rates that, when combined with existing most-favoured-nation duties, total either 10pc or 12.5pc.
The remaining 38 countries, including China, will be subject to a 12.5pc tariff.
The announcement prompted criticism from several affected countries.
Japanese government spokesman Minoru Kihara said Tokyo “regrets” the decision, arguing that the higher tariff was imposed “solely on the grounds that there is no ban on the import of products produced through forced labour”.
Australia’s Trade Minister Don Farrell also condemned the move, calling the tariffs “unjustified” and saying they were “inconsistent with our free trade agreement, and should be removed”.
The US said products already subject to sector-specific tariffs, including steel and aluminium, would not be affected. Certain energy products, fertilisers and goods covered under the US-Mexico-Canada Agreement will also remain exempt, according to a US official.
Pakistan had previously submitted detailed responses to the Office of the US Trade Representative (USTR), including an additional submission ahead of bilateral trade talks earlier this month addressing the forced labour investigation.
More trade actions possible
Separately, Washington is investigating 16 economies over concerns related to excess industrial capacity, inquiries that could result in further tariffs.
Trade lawyer Greta Peisch said maintaining a baseline tariff while keeping open the possibility of additional duties gives Washington continued leverage in trade negotiations.
She added that the investigations were designed to ensure any new tariffs would be better positioned to withstand court challenges.
Josh Lipsky of the Atlantic Council said the move signals a “much more protectionist world’s largest economy” and suggested the tariffs are likely to remain in place throughout Trump’s current term.
The latest measures follow a series of recent trade actions by the Trump administration, including a 25pc tariff on a range of Brazilian imports over what Washington described as unfair trade practices.
Earlier this week, Trump also announced 50pc tariffs on many Canadian products, accusing Ottawa of “discriminatory treatment” of US alcohol, automobiles and dairy exports. Those tariffs are due to take effect next month.
Despite the growing use of tariffs, the European Union said it expects Washington to honour the commitments outlined in the recently agreed EU-US joint trade statement.
