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55/A, H M Siddique Mansion (Level-7), Purana Paltan, Motijhel C/A, Dhaka-1000. Phone: +8802226640056,
e-mail: [email protected], [email protected]
The United States has imposed new tariffs on imports from Bangladesh and nearly 60 other major trading partners, citing their alleged failure to take sufficient action against forced labour in supply chains.
The new tariffs took effect on Friday, the same day a temporary 10% tariff introduced earlier this year expired. The Office of the US Trade Representative (USTR) said the measure aims to strengthen enforcement against goods produced with forced labour.
The new tariff rates range from 10% to 12.5%, depending on each country's efforts to prevent imports of goods made with forced labour.
Bangladesh joins countries including the United Kingdom, China, the European Union, Canada, Japan, India and Pakistan on the list of affected trading partners.
The latest move marks another step in President Donald Trump's trade agenda after the US Supreme Court ruled earlier this year that the administration could not rely on emergency powers to impose broad global tariffs. The administration subsequently turned to other legal authorities to pursue its trade policies.
Last month, the White House proposed tariffs of between 10% and 12.5% on goods imported from dozens of countries, arguing that many trading partners had failed to adequately address forced labour.
On Thursday, US Trade Representative Jamieson Greer confirmed that the tariffs would take effect under President Trump's directive.
"Today's action begins to address human rights abuses and trade distortions that undermine workers' welfare," Greer said in a statement.
The tariffs rely on Section 301 of the US Trade Act of 1974, which authorises Washington to respond to foreign trade practices that it considers unfair or harmful to US commerce.
Earlier this week, the Trump administration invoked Section 338 of the Tariff Act of 1930 to impose a 50% tariff on certain Canadian goods.
The USTR said the new tariffs apply because trading partners have failed to ban and effectively enforce restrictions on imports produced through forced labour.
According to the agency, the measures cover the United States' top 60 trading partners, which account for about 99.4% of total US imports.
The office also said the Trump administration has made restrictions on goods produced with forced labour a key element of reciprocal trade agreements during the president's second term.
Countries that have banned imports of goods made with forced labour, committed to enforcing such bans through reciprocal trade agreements, or introduced partial measures to curb those imports will face a 10% tariff.
Those that have not taken comparable steps will face the higher 12.5% rate.
Countries subject to the 10% tariff include Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
For products not covered by other exemptions, selected goods from the European Union, Taiwan, Japan, South Korea and Switzerland will face an additional Section 301 tariff of either 10% or 12.5% above the existing most-favoured-nation tariff rate, with further details to appear in a Federal Register notice.
All other economies covered by the investigation will face a 12.5% tariff.
Greer said he was encouraged that some trading partners had moved quickly to prohibit imports made with forced labour and expressed hope they would fully implement those commitments.
President Donald Trump has consistently argued that tariffs protect American workers, create more manufacturing jobs and strengthen the US economy.
After returning to the White House last year, Trump imposed tariffs of up to 50% on imports from global trading partners, saying the measures would counter what he described as decades of unfair treatment of the United States in international trade.
However, the US Supreme Court struck down the policy in February, ruling that the president had exceeded his authority by imposing the tariffs without congressional approval.
Following the ruling, the government refunded billions of dollars in tariff payments to affected companies.
The White House has since explored alternative legal mechanisms to maintain its trade agenda, including the temporary tariff framework that now imposes rates of 10% to 12.5% on imports from dozens of countries.
Washington has also introduced separate tariffs on countries including Brazil and Canada, while its tariff dispute with China remains unresolved despite a temporary pause in retaliatory measures.
Economists have warned that higher tariffs could raise prices for everyday consumer goods, including coffee and microwave ovens, in the US market.
Because importing companies pay the tariffs, they often pass the additional costs on to consumers through higher retail prices.
Trump has also used tariffs to pressure trading partners, including Mexico, on issues beyond trade, such as labour standards.
Several trading partners are now considering legal challenges or retaliatory tariffs in response to the latest US measures.
Meanwhile, the Office of the US Trade Representative is investigating 16 countries over allegations of excess industrial capacity. The inquiries cover economies that account for a large share of US imports and could pave the way for additional tariffs later this year
Several countries, including Brazil, have criticised the United States after Washington imposed new tariffs linked to forced labour concerns.
Brazil described the measure as "unfair" and "arbitrary", accusing Washington of using workers' rights to justify a protectionist trade policy.
In a statement, the Brazilian government said the United States had chosen to use the important issue of labour rights to support its own protectionist agenda.
Brazil, which faces the new 12.5% tariff, said it would respond in accordance with its domestic laws and explore alternative export markets for its products.
Earlier this month, the United States imposed a separate 25% tariff on Brazilian furniture, machinery, sugar and other goods, although it exempted products including beef and coffee.
Japan also expressed disappointment over the latest US tariffs. The Japanese government said on Friday that its trade practices comply with international rules.
Australian Trade Minister Don Farrell called the tariffs "completely unfair" and said Canberra would continue pressing Washington to remove all duties on Australian exports.
China has repeatedly opposed unilateral tariffs and rejected allegations that it uses forced labour.
Chinese Foreign Ministry spokesperson Mao Ning said, "There is no so-called forced labour in China, and we oppose the use of this issue as a pretext for political manipulation."
However, several international human rights organisations have said forced labour exists in China, particularly among Muslim ethnic minorities in the Xinjiang region.
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