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The Trump administration is proposing new tariffs of 10% to 12.5% on goods from 60 trade partners, citing failures to curb the use of forced labor.
All 60 trade partners, which include critical ones such as the European Union, Britain, Canada, China, Japan, Mexico, South Korea and Taiwan, “have failed both to impose a legal prohibition on the importation of goods produced wholly or in part with forced labor (forced labor goods) and to effectively enforce such a prohibition,” the Office of the U.S. Trade Representative said in a lengthy report released last night.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” U.S. Trade Representative Jamieson Greer said in a statement. “This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”
The forced labor investigation was launched in March after the Supreme Court struck down much of Trump’s global tariff regime. The new tariffs would be applied under Section 301 of the Trade Act of 1974, which authorizes investigations of alleged unfair foreign trade practices and was not affected by the Supreme Court ruling.
It was not immediately clear how these tariffs would interact with framework trade deals that the Trump administration has already reached with many of the affected economies. They will not immediately go into effect, with public comments due by July 6 and a hearing set for July 7, according to a Federal Register notice.