Pakistan Could Face New US Tariffs Over Forced Labour Concern

Pakistan could face new tariffs on exports to the United States after the US Trade Representative (USTR) proposed a 10 percent duty on imports from the country over concerns related to the enforcement of restrictions on goods produced with forced labour, reported Reuters.

The proposal is part of trade action targeting 60 economies as the Trump administration seeks to rebuild its tariff agenda following legal challenges to earlier measures.

According to the USTR, Pakistan was among six economies found not to have effectively enforced prohibitions on imports made with forced labour. The agency said this failure undermines efforts to prevent forced labour from entering global supply chains and creates unfair competition for American workers.

Under the proposal, Pakistan would face a 10 percent tariff alongside countries including Canada, Mexico, Indonesia, the European Union, Bangladesh, Malaysia, Taiwan, Cambodia, Argentina, Guatemala, El Salvador, and the United Kingdom. A separate group of 45 economies could face even higher duties of 12.5 percent.

The proposed measures follow investigations launched by Washington into whether trading partners had taken adequate action against imports linked to forced labour and whether shortcomings affected US commerce.

US Trade Representative Jamieson Greer said the failure of key trading partners to address forced labour concerns was unacceptable and argued that American workers should not be forced to compete on what he described as an uneven playing field.

The tariffs are not yet final. The USTR has opened a public consultation process, with written comments due by July 6. Public hearings will follow before a final determination is made.

If implemented, the tariffs could create additional challenges for Pakistani exporters at a time when the country is already struggling to accelerate export growth. Pakistan’s exports have remained largely stagnant at around $25 billion to $30 billion for nearly two decades, despite government efforts to boost overseas sales and increase foreign exchange earnings.

The latest proposal comes ahead of the July 24 expiry of a temporary 10 percent tariff imposed by the Trump administration after the US Supreme Court struck down earlier tariff measures introduced under emergency powers legislation.