Trump Imposes New Tariffs on 60 Countries: Who Will Be Affected by the Restrictions on Goods Produced Using Forced Labor
24 July 07:47
U.S. President Donald Trump signed an order imposing new tariffs on 60 countries that import goods into the United States that were produced using forced labor. The new restrictions are the result of investigations by the Office of the U.S. Trade Representative (USTR) and took effect in accordance with U.S. international trade law.
This was reported by the U.S. government’s press service, according to "Komersant Ukrainian"
Why the U.S. Imposed New Tariffs
The decision was made pursuant to Section 301 of the U.S. Trade Act of 1974, which allows U.S. authorities to impose trade sanctions in response to unfair trade practices that harm U.S. economic interests.
According to the U.S. administration, the new measures are intended to strengthen the fight against the use of forced labor in global supply chains and encourage countries to implement effective controls over the origin of products.
Which countries are subject to a 10% tariff
The lowest rate— 10% —will apply to countries that have already implemented or officially committed to effectively banning the import of goods produced using forced labor.
This group includes:
- Canada;
- the United Kingdom;
- India;
- Malaysia;
- Mexico;
- Indonesia;
- Pakistan;
- Bangladesh;
- Cambodia.
What rates have been set for the EU, Japan, and South Korea?
For certain goods from:
- European Union countries;
- Japan;
- South Korea;
- Taiwan;
- Switzerland
a tariff of 10% or 12.5% will apply .
The specific rate will depend on the applicable Most-Favored-Nation (MFN) rate for the relevant products.
Which countries will be subject to a 12.5% tariff?
All other countries that were subject to the USTR investigation and do not meet the criteria for the minimum rate will be subject to a 12.5% tariff.
The U.S. government will publish a complete list of countries and product categories in official documents once all procedures have been completed.
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Which goods are exempt from the new tariffs
The U.S. administration has provided for a number of exceptions.
The new restrictions will not apply to:
- critically important raw materials, a shortage of which could arise in the U.S.;
- goods whose absence could cause serious disruptions to the U.S. economy;
- products that cannot be manufactured in the U.S. or purchased from other countries at an economically reasonable price.
Separate exemptions are also provided for certain product groups from:
- Argentina;
- Bangladesh;
- Cambodia;
- Ecuador;
- El Salvador;
- EU countries;
- Guatemala;
- Indonesia;
- Jordan;
- Malaysia;
- Switzerland;
- Taiwan;
- the United Kingdom.
Officials in Washington explain that these exemptions are intended to encourage countries to continue fulfilling their international obligations to combat forced labor.
What Are Goods Produced by Forced Labor?
Under international law, forced labor refers to any work or service performed by a person under the threat of punishment and without their voluntary consent.
According to estimates by the International Labor Organization (ILO), millions of people worldwide remain victims of forced labor in the textile, electronics, agriculture, fishing, construction, and other industries.
How New Tariffs Could Affect Global Trade
The introduction of new tariffs is yet another step by the Donald Trump administration in revising U.S. trade policy.
Experts note that the new rules could affect international supply chains, forcing manufacturers to more carefully verify the origin of their products and to be more proactive in refusing to do business with companies where there is a risk of forced labor.
For some exporters, this will mean having to adjust their logistics, undergo additional inspections, and demonstrate compliance with international labor standards.
It is expected that the U.S. decision may also serve as a model for other countries that have been tightening controls over the ethical practices of global supply chains in recent years.
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