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Home Pakistan

US proposes tariffs on Pakistan, India and dozens of economies over forced labour concerns

The United States has proposed tariffs of up to 12.5 per cent on roughly 60 economies, including Pakistan and India, arguing that trading partners have not done enough to prevent forced labour-linked imports.

4 months ago
in Pakistan
Reading Time: 2 mins read
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NEW YORK(Web Desk) – The administration of US President Donald Trump has proposed a new round of tariffs targeting around 60 economies, including Pakistan and India, citing concerns over the alleged failure of trading partners to effectively prevent the import of goods linked to forced labour.

According to a filing issued by the Office of the US Trade Representative (USTR), the proposed duties range between 10 per cent and 12.5 per cent. The measures will undergo a public consultation process before any final decision is made.

The latest proposal forms part of a broader effort by Washington to rebuild its tariff framework after previous trade measures faced legal challenges. Earlier this year, investigations were launched into multiple trading partners, including China, the European Union and Japan, to examine whether countries had taken adequate steps against imports produced through forced labour.

The USTR stated that 54 economies failed to introduce or effectively enforce prohibitions on goods produced using forced labour. Countries listed in this category include China, Vietnam, Taiwan, the United Kingdom and India.

Meanwhile, another group of six economies — Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan — were identified as jurisdictions that allegedly failed to properly enforce existing restrictions.

US Trade Representative Jamieson Greer said the situation created unfair competition for American workers and businesses.

“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” Greer said, arguing that such practices place American industries at a disadvantage in global markets.

Under the proposal, imports from Pakistan and several other economies, including Bangladesh, Malaysia and Britain, would face a 10 per cent tariff. A higher 12.5 per cent duty has been proposed for another 45 economies investigated under the review process.

However, the proposal also includes several exemptions. Products including beef, coffee and selected fruits and nuts would not be affected. Goods qualifying under North American trade arrangements, along with certain textiles and apparel products, are also expected to remain exempt.

The USTR has invited written comments until 6 July and plans to hold public hearings before making final decisions.

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The proposal has triggered international criticism. China rejected allegations related to forced labour and opposed what it called unilateral trade measures. European Union officials described the tariffs as unjustified, while Swiss authorities argued that American industries were not harmed by Swiss trade practices.

The announcement comes ahead of the July expiry of a temporary tariff arrangement introduced after earlier trade policies encountered legal setbacks.

 

Tags: Donald TrumpForced Labourglobal economyIndiaPakistanTariffsTrade PolicyUnited States
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