TAIPEI (Taiwan News) — The US on Tuesday proposed imposing tariffs of at least 10% on imports from Taiwan and dozens of other trading partners under a Section 301 investigation into forced labor practices, part of US President Donald Trump's broader effort to revive his trade agenda and expand tariffs.
The Office of the United States Trade Representative (USTR) said that imports from 60 economies, including Taiwan, Canada, Mexico, the EU, and the UK, would face a 10% tariff, per Bloomberg. Imports from other major economies, including China, India, Japan, South Korea, Brazil, and Switzerland, would be subject to a 12.5% tariff.
Taiwan was among the 60 economies investigated and was listed as one of 54 that allegedly did not "impose and effectively enforce" a prohibition on the importation of goods made with forced labor.
The USTR said the lower tariff rate would apply to economies that prohibit imports of products made with forced labor, or have committed to implementing such measures. Economies that have “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor” would face the higher rate.
The proposal marks a significant step in Trump’s effort to restore the tariff policies he introduced during his first year in office, which were later ruled unconstitutional, according to Bloomberg. The new tariffs are being proposed based on findings from an investigation conducted under Section 301 of the Trade Act of 1974.
The tariffs would not take effect immediately, as the proposal must undergo a public comment and review process, meaning the final measures could still be revised. According to the notice, the deadline for written comments is July 6, and the Section 301 committee is expected to begin public hearings on July 7.
US Trade Representative Jamieson Greer said the failure of the US’ most important trading partners to address imports of goods made with forced labor was "unacceptable" and forced US workers to compete globally on "an unlevel playing field." He added that the US would "no longer tolerate this disparity."
The proposed tariff framework includes several exceptions. Certain apparel and textile imports from some countries would qualify for lower tariff rates, with quotas determined by the volume of US textile exports to those countries.
In addition, some products would be completely exempt from the new tariffs, including beef, tomatoes, bananas, coffee, orange juice, and other food products. Metal products already subject to separate tariff measures would also be excluded, as would certain fuels and chemicals.
The forced labor investigation is only one component of the Trump administration’s broader effort to revive its tariff agenda, per Bloomberg. The US government has also launched another series of Section 301 investigations under the Trade Act of 1974 targeting excess manufacturing capacity among multiple trading partners.
Separately, the US posted a notice last week on the Federal Register’s Public Inspection page announcing US Section 232 tariff concessions for Taiwan’s non-semiconductor products. Taiwan and the US signed an investment memorandum of understanding in January, making Taiwan the first country to receive preferential treatment under Section 232 tariffs.
