The Trump administration has proposed imposing additional duties of 10% or 12.5% on imports from 60 economies including Sri Lanka after determining their failures to curb trade in goods made with forced labor are unreasonable and restrict U.S. commerce.
The proposal from the U.S. Trade Representative's office is the latest finding from a Section 301 unfair trade practices investigation to be released as the Trump administration seeks to rebuild its emergency tariffs, which were struck down by a U.S. Supreme Court decision in February.
The USTR said it determined that it would impose 10% duties related to the forced labor investigation on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Malaysia, Taiwan and Britain.
The trade agency said it would impose additional duties of 12.5% on the remaining 45 countries that it investigated.
"The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable," U.S. Trade Representative Jamieson Greer said in a statement. "This creates a dynamic where American workers are forced to compete globally on an unlevel playing field."
According to the trade agency, the USTR found that Sri Lanka has failed to impose and effectively enforce a forced labor import prohibition.
The USTR noted that the results of its investigation indicate that the acts, policies and practices of Sri Lanka related to the failure to impose and effectively enforce a forced labor import prohibition are unreasonable and burden or restrict U.S. commerce.
Accordingly, it has proposed to impose 12.5% additional duties on goods imported from Sri Lanka.
The USTR said it also was proposing a textile mechanism that would allow for a certain volume of apparel and textile imports to enter the U.S. at a reduced tariff rate, though the duties and volumes were not disclosed.
The announcement comes ahead of the July 24 expiration of a 10% temporary tariff imposed by the Trump administration on February 20, the day the Supreme Court struck down U.S. President Donald Trump's tariffs under the International Emergency Economic Powers Act.
On Monday, the USTR proposed a 25% duty on many Brazilian goods as a result of a Section 301 investigation into the country's digital trade practices and preferential tariffs. The trade agency is also expected to soon unveil the findings of another major Section 301 probe into the buildup of excess industrial capacity in 16 trading partners, including China.
In the forced labor findings, the USTR said it would exempt from the tariffs a number of products including energy, rare earths and certain other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts.
The USTR said it would accept public comments on the proposed tariffs and other remedies through July 6, with a public hearing scheduled for July 7.
(With Agencies inputs)
