US proposes new tariffs on 60 economies over forced labor imports

US President Donald Trump's administration is proposing additional tariffs of 10% or more to be imposed on its trading partners following a probe into countries importing goods allegedly made with forced labor.

In a report released Wednesday, the US Trade Representative (USTR) said it had found that 60 economies had failed to "impose and effectively enforce a prohibition on the importation of goods produced with forced labor," calling it a "burden" to US commerce.

"This creates a dynamic where American workers are forced to compete globally on an unlevel playing field. We will no longer tolerate this disparity," USTR Ambassador Jamieson Greer said in the document.

The tariff proposal is currently open to public comment and review and is therefore not in immediate effect.

The new tariffs under US trade law could help Trump bypass the Supreme Court ruling in February which stated that his tariffs werelargely illegal.

Which countries will face extra US tariffs?

An additional 10% tariff will be imposed on imports from Canada, Mexico, Taiwan, Pakistan, the UK and EU nations. These are countries which, according to Washington's investigation, impose a forced labor import prohibition, that have undertaken commitments on forced labor or have partially prevented the import of forced labor goods.

An additional 12.5% tariff will be imposed on 45 others, including China, India, Japan, South Korea, Brazil and Switzerland. These are countries that have failed to impose and effectively enforce the prohibition of imports made with forced labor, the statement said.

"Each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally," Greer said.

The USTR said it had initiated 60 investigations into forced labor in March.

The alleged failure to prohibit imports made with forced labor was "subjecting US producers to unfair competition" in both export markets and the US market, the USTR said.

The trade regulation body will hold hearings about the proposed tariffs on July 7.

More negotiations to ensue?

This latest wave of tariffs is likely to unsettle several US trade partners, who have been negotiating lower levies for over a year.

Just two weeks ago, the EU approved a trade deal with Washington to cap tariffs on most EU exports at 15%. That consensus was hard fought, with some member nations initially threatening to block the deal.

Meanwhile, a US delegation is currently in New Delhi to finalize a trade deal after Washington imposed one of the highest tariffs on India last year. India's Commerce Minister Piyush Goyal on Monday told local media that key details of the deal were already settled.

The last set of tariffs, partially over India's import of Russian oil, had significantly soured diplomatic ties between the two strategic powers. US Secretary of State Marco Rubio spent four days in India in May, visibly trying to smooth over diplomatic ties.

Trump, himself, visited China recently where he discussed expanding market access for American goods with Chinese President Xi Jinping.

The new tariffs may well put a proverbial spanner in the works.