The Trump administration has opened a fresh front in its trade agenda, proposing new tariffs on imports from 60 economies over what it describes as inadequate action against goods produced using forced labour.
The move could reshape trade flows across multiple sectors and adds another layer of uncertainty to the global trading system just months after a US Supreme Court ruling disrupted President Donald Trump’s earlier emergency tariff regime.
With countries ranging from Canada and the European Union to Bangladesh, Pakistan and the UK included in the proposal, businesses around the world are now assessing what the latest tariff threat could mean for exports to the United States.
A New Trade Weapon Emerges
The proposal was unveiled by the Office of the United States Trade Representative (USTR), which concluded that several trading partners had failed to adequately address the importation of goods linked to forced labour, reported Reuters.
As a result, Washington is proposing additional duties of either 10 per cent or 12.5 per cent on imports from the affected economies.
The recommendation stems from a Section 301 investigation, a powerful US trade tool used to examine practices considered unfair or harmful to American commerce.
The announcement represents one of the most significant trade actions since the Trump administration began rebuilding parts of its tariff framework following a February Supreme Court decision that struck down tariffs imposed under the International Emergency Economic Powers Act.
Which Countries Face The New Duties?
The USTR has proposed a 10 per cent tariff on imports from a group of key US trading partners, including Canada, the European Union, Mexico, Indonesia, Pakistan, Bangladesh, Cambodia, Malaysia, Taiwan and the United Kingdom.
However, products from several other major economies would face a steeper tariff. According to the proposal, imports from countries including India, China, Japan, South Korea, Brazil and Switzerland would be subject to a 12.5 per cent levy, placing them in the higher-duty category identified by the investigation.
In total, 60 economies have been targeted under the proposal, with the remaining 45 countries covered by the investigation also facing additional duties of 12.5 per cent.
The classification is likely to draw close attention from exporters and policymakers in affected countries, particularly those with significant trade exposure to the US market.
What Does The Proposal Mean For India?
India has been placed in the higher tariff bracket under the proposal, with goods exported to the US potentially facing an additional 12.5 per cent duty if the measures are implemented. While the proposal remains subject to public consultation and review, the development could be closely watched by sectors dependent on US demand, particularly as trade ties between New Delhi and Washington continue to deepen.
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Why Forced Labour Has Become A Trade Battleground
Explaining the rationale behind the move, US Trade Representative Jamieson Greer argued that the issue extends beyond human rights and directly affects economic competition.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” Greer said.
“This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”
The administration’s position is that products manufactured using forced labour can distort costs and undermine businesses operating under stricter labour standards.
Textiles Could Face A New Framework
Alongside the proposed tariffs, the USTR has outlined a separate textile mechanism aimed at regulating apparel and textile imports.
The proposal would allow a specified volume of textile and clothing imports to enter the US at a reduced tariff rate.
However, officials have not yet disclosed the tariff levels, quota volumes or implementation details.
The textile sector is expected to closely monitor the consultations, particularly countries such as Bangladesh, Cambodia and Pakistan, where apparel exports form a significant portion of overseas trade.
More Tariffs Could Be On The Way
The forced labour proposal is only one part of a broader trade offensive currently underway in Washington.
Just a day earlier, the USTR proposed a 25 per cent duty on a range of Brazilian products following a separate Section 301 investigation into the country’s digital trade practices and tariff policies.
Meanwhile, another major investigation examining excess industrial capacity among 16 trading partners, including China, is expected to produce findings in the coming weeks.
Taken together, the moves suggest the Trump administration is preparing for a more aggressive use of trade measures across multiple sectors and regions.
Not Everything Will Be Taxed
Despite the broad scope of the proposal, several categories of goods have been excluded.
According to the USTR, products such as energy supplies, rare earth materials, certain metals, beef, coffee, selected fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts would be exempt from the proposed duties.
The exemptions indicate that Washington is seeking to avoid disruptions in strategically important supply chains while still applying pressure on trading partners.
What Happens Next?
The proposal is not yet final.
The USTR has opened a public consultation process and will accept comments until July 6. A public hearing is scheduled for July 7, after which the administration will decide whether to proceed with the tariffs, modify them or explore alternative remedies.
For exporters around the world, the next few weeks could prove crucial.
If implemented, the duties would affect some of America’s largest trading relationships and add fresh uncertainty to global commerce at a time when businesses are already grappling with geopolitical tensions, supply-chain disruptions and slowing economic growth.
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