US proposes new tariffs over forced labor, irking Europe

WASHINGTON (AFP) — The U.S. Trade Representative on Tuesday proposed new duties targeting 60 economies for alleged failures to act against forced labor, a move that risks renewed trade tensions with key partners.

The proposed levies range from 10%-12.5%, according to a government filing, and come as President Donald Trump’s administration seeks to rebuild its tariff agenda following legal setbacks.

The measures will undergo a public comment period before a final decision is made.

But their announcement could lead to renewed friction between the United States and the European Union — one of the potential targets — as they move to implement a trade deal struck last summer.

“The EU considers tariffs imposed on these grounds to be unjustified,” EU trade spokesman Olof Gill said Wednesday.

The U.S. move comes months after Washington opened investigations into trading partners including China, the EU and Japan.

The probes looked into whether they took action against the import of goods made with forced labor, and if this impacted U.S. commerce.

On Tuesday, the trade representative said 54 of the economies “failed to impose and effectively enforce a forced labor import prohibition.”

This group includes China, Vietnam, Taiwan and Britain.

Six other economies — Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan — were deemed not to have effectively enforced such prohibitions.

“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,” he said.

But the proposed tariffs come with various exemptions such as beef, coffee and certain fruits and nuts.

Goods from Canada and Mexico that comply with a North American free trade pact will also be exempt, as will certain textiles and apparel.

The public can provide written comments by July 6, and the trade representative will subsequently hold hearings.

EU moves ahead on deal

The EU’s Gill said that Brussels would analyze the preliminary findings but noted that the 27-nation bloc had some of the world’s “most ambitious” laws against forced labour.

He said the EU Commission expected Washington to “fully respect the terms” of an accord struck last July that caps U.S. levies on most European goods at 15%, and would “continue to ensure that the interests of the European Union are fully protected.”

The bloc has moved forward with implementing the deal, with the European Parliament’s trade committee giving its approval on Tuesday.

The progress comes after the Parliament suspended the ratification process several times, notably over Trump’s threats this year to seize Greenland, and sought to include extra safeguards.

After the U.S. Supreme Court struck down a swath of Trump’s tariffs in February, U.S. officials began new trade probes in a push to impose more lasting duties.

Apart from the investigations on forced labor, Greer also opened probes on excess industrial capacity.

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By Agence France-Presse