The Office of the U.S. Trade Representative is proposing to impose additional tariffs of 10-12.5 percent on imports from 60 economies following Section 301 investigations into the measures they have taken to prohibit imports of goods produced with forced labor.
Findings
USTR’s report finds that the following 54 economies have failed to impose and effectively enforce such a prohibition: Algeria, Angola, Argentina, Australia, the Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Chile, China, Colombia, Costa Rica, Dominican Republic, Egypt, El Salvador, Guatemala, Guyana, Honduras, Hong Kong, China, India, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Malaysia, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Trinidad and Tobago, Türkiye, United Arab Emirates, United Kingdom, Uruguay, Venezuela, and Vietnam.
The report also states that the following six economies have failed to effectively enforce such a prohibition: Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan.
Proposed Tariffs
In response, USTR is proposing to impose a Section 301 tariff of 10 percent on imports from subject economies that:
- impose a forced labor prohibition (Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan);
- have taken on commitments related to forced labor import prohibitions through an agreement on reciprocal trade with the U.S. (Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia, and Taiwan); or
- have imposed a partial regime with the effect of preventing the importation of certain forced labor goods (the United Kingdom).
The tariff rate for imports from all other subject economies would be 12.5 percent.
Product Coverage
These additional tariffs would be imposed on all products except those listed in annex A to this notice. These exceptions include (1) all articles and parts currently subject to section 232 tariffs, (2) raw materials that if subject to the proposed tariffs could lead to the unavailability of domestic supply, (3) products that could cause economy-wide disruptions if subject to the proposed tariffs, (4) certain products that cannot be grown or produced in sufficient quantities in the U.S. or obtained from other sources, (5) informational materials (e.g., books), donations, and accompanied baggage, and (6) articles for which additional tariffs may not contribute substantially to the elimination of the investigated acts, policies, and practices.
Textiles and Apparel
USTR is also proposing a mechanism that would allow for a certain volume of textile and apparel imports from certain economies to enter the U.S. at a reduced Section 301 tariff rate. Under this mechanism the volume of reduced-duty imports from certain trading partners would be equivalent to the quantity of exports of textiles (e.g., U.S.-produced manmade and cotton fiber textile inputs) from the U.S. to that trading partner. A certain volume of textile and apparel imports would also be allowed to enter the U.S. at the reduced rate based on the volume of U.S. cotton and cotton products a trading partner imports from the U.S. during a certain period of time.
Comments
USTR is accepting comments on this proposal by July 6. A hearing will be held July 7 and requests to appear at the hearing are due by June 22.
USTR is particularly interested in comments on the following issues.
- the specific products to be subject to increased tariffs, including whether products should be retained or removed from the scope of the action or whether products currently excluded should be added
- whether products listed in annex A are appropriately excluded
- the level of the increase, if any, in the tariff rate
- whether different tariff rates should be applied to an economy that has made a commitment to the U.S. to impose and enforce a forced labor import prohibition, has imposed a forced labor import prohibition, or has imposed a partial regime with the effect of preventing the importation of certain forced labor goods
- features of a textile mechanism, including the U.S. and foreign products to be covered, the relative market opportunities for each side, and the tariff rate (if any) to be applied to products subject to that mechanism, as well as whether a similar mechanism should apply to any other product or sector
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