US proposes new tariffs on Pakistan, 59 other economies

The Trump administration has proposed new tariffs of 10% and 12.5% on imports from 60 economies, including Pakistan, after concluding that their efforts to prevent trade in goods linked to forced labour are inadequate and place US businesses at a disadvantage.

The proposal was announced by the Office of the United States Trade Representative (USTR) following a Section 301 investigation into forced labour-related trade practices. 

The move is part of the administration’s broader effort to rebuild tariff measures after the US Supreme Court struck down several emergency tariffs earlier this year.

Under the proposal, Pakistan, along with Canada, the European Union, Mexico, Indonesia, Bangladesh, Malaysia, Taiwan and several other economies, would face an additional 10% duty on exports to the United States. The remaining countries covered by the investigation would be subject to a higher tariff rate of 12.5%.

US Trade Representative Jamieson Greer said the failure of key trading partners to curb imports of goods produced through forced labour creates an “unlevel playing field” for American workers and companies. 

He said the administration would no longer tolerate practices that encourage the global use of forced labour.

The USTR also proposed a separate mechanism that would allow limited volumes of apparel and textile imports to enter the US at reduced tariff rates, although details have not yet been released. 

Several products, including energy resources, rare earth minerals, pharmaceuticals, aircraft parts, coffee, beef and selected agricultural goods, would be exempt from the proposed duties.