According to Bloomberg on June 2, the USTR concluded an investigation under Section 301 of the Trade Act of 1974, finding that the systems and enforcement related to imports of forced labor products in these economies are unreasonable and impose burdens on U.S. commerce.
As a result, the USTR proposed a tiered tariff system based on the introduction of forced labor import bans and compliance commitments, suggesting rates of 10% and 12.5% for different economies.
Bloomberg reported that products imported from Canada, Mexico, the European Union, Taiwan, and the United Kingdom would face a 10% tariff, while major economies such as China, India, Japan, South Korea, Brazil, and Switzerland would incur a 12.5% tariff.
The investigation was initiated by the USTR on March 12. Following this, the agency conducted public consultations and hearings, receiving approximately 60 testimonies and 500 comments and rebuttals.
Jamieson Greer, the USTR, stated, "It is unacceptable that our most important trading partners have failed to address the issue of imports made with forced labor. This creates a structure that forces American workers to compete in an unfair environment globally."
He added, "We will no longer tolerate this imbalance. Some trading partners have taken initial steps to block imports of forced labor products through commitments under the U.S.-Mexico-Canada Agreement (USMCA) and other trade agreements. Each trading partner must take further actions to ensure that trade does not unjustly promote and entrench forced labor globally."
However, the new tariff system includes some exceptions. Certain clothing and textile imports from specific countries may enter the U.S. at a lower Section 301 tariff rate, with quotas determined by the volume of textile exports from those countries to the U.S.
Some food items, including beef, tomatoes, bananas, coffee, and orange juice, are excluded from the tariffs. Metals and certain fuel and chemical products, which already face other tariffs, are also exempt.
The final tariff rates and specific exceptions have yet to be confirmed. The USTR is accepting applications to attend public hearings until June 22 and will accept written comments until July 6. The hearings are scheduled for July 7.
This move comes as the Biden administration seeks to re-establish extensive tariff barriers that were invalidated by a Supreme Court ruling during the Trump administration. Bloomberg noted that Section 301 tariffs are considered legally more robust and flexible than other measures reviewed by Trump, though their implementation may take longer.
Trump had also enacted a temporary 10% global tariff under Section 122 of the Trade Act, which is set to expire in July and is currently subject to legal challenges.
* This article has been translated by AI.
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