TAIPEI (Taiwan News) — US President Donald Trump could impose a new round of Section 301 tariffs as early as this week over forced labor concerns, with Taiwan expected to face a 10% duty.
After several tariff measures were ruled invalid by the Supreme Court in February, Trump imposed a temporary 10% global tariff that is scheduled to expire Friday, per Financial Times. The new tariffs would replace the temporary measure and apply to about 60 economies based on their efforts to prevent imports made with forced labor, with rates ranging from 10% to 12.5%.
US Trade Representative Jamieson Greer told CNBC that the US expects to take action soon but did not disclose a specific timeline. Greer said the new measures targeting forced labor would cover “about 99% of our trade.”
The Office of the US Trade Representative launched the Section 301 investigation in March under the Trade Act of 1974, per AFP. Last month, it released a report recommending tariffs on imports from 60 economies over forced labor concerns.
The report recommended a 10% tariff for Taiwan, saying the country appears to be taking steps to block imports made with forced labor, per BCC News. However, it said Taiwan has not yet enacted a legal ban on such imports, concluding that the gap burdens or restricts US commerce.
The US also launched a separate Section 301 investigation in March into global industrial overcapacity. The probe covers Taiwan, the European Union, China, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Bangladesh, Mexico, Japan, and India, and has entered the public hearing stage.
