Washington: The US is poised to impose additional tariffs of 10-12.5 percent on trading partners, including Thailand. The United States announced it will raise import tariffs by 10 percent to 12.5 percent on 60 trading partners, including Thailand, citing their failure to effectively enforce import bans on goods associated with forced labor.
According to Thai News Agency, the U.S. government declared the proposed tariff increases following an investigation revealing that these countries had not effectively enforced bans on importing goods linked to forced labor. The initiative was led by the Office of the U.S. Trade Representative (USTR) under Section 301 of the Trade Act, following a U.S. Supreme Court decision that overturned the blanket tariffs previously imposed by the Trump administration.
The U.S. Trade Representative's proposal categorizes trading partners into two groups based on their forced labor laws' stringency. A 10% tariff increase will target 15 economies with laws prohibiting forced labor goods imports or existing agreements with the U.S. but lacking effective inspection mechanisms. These countries include Canada, Mexico, the United Kingdom, the European Union, Taiwan, Bangladesh, and Pakistan.
The 12.5% tariff increase will apply to 45 economies without clear prohibition laws or those failing to enforce them fully. These include major trading partners and Asian countries such as China, India, Japan, South Korea, Brazil, Switzerland, and Thailand.
Exceptions have been made for essential goods that are not easily replaceable, such as energy, minerals, agricultural products, and industrial and healthcare products. A mechanism has also been suggested for textiles, allowing certain clothing and textile items to be imported at lower-than-normal tariffs within defined quotas, to mitigate the impact on domestic supply chains and consumers.
U.S. Trade Representative Jamieson Greer stated that the failure of trading partners to address forced labor issues allows foreign companies to unfairly reduce production costs, forcing American workers and businesses to compete on an "unequal playing field." However, this measure is not immediately effective. The U.S. Trade Representative's office is accepting public comments and stakeholder input until July 6th, with a formal comment session scheduled for July 7th to review and refine the details before official approval.