The United States has imposed a 10 percent tariff on Pakistani exports as part of new Section 301 duties on 60 trading partners over forced labour enforcement concerns.
Islamabad, Pakistan – Web Desk: The United States has imposed new tariffs of 10 to 12.5 percent on imports from 60 trading partners, including Pakistan, citing inadequate enforcement of bans on goods produced through forced labour. The new duties took effect on Friday, July 24, with Pakistan among the countries assigned the lower 10 percent rate.
The Office of the US Trade Representative (USTR) confirmed the action under Section 301 of the Trade Act of 1974, which allows the president to impose tariffs against countries found to engage in unreasonable or unjustifiable trade practices. The measure replaces a temporary 10 percent global tariff that Washington had introduced earlier this year and that was set to expire the same day.
USTR Ambassador Jamieson Greer said the United States has enforced its own forced-labour import ban for nearly a century and expects trading partners to do the same, according to the agency’s statement. Officials framed the action as part of a broader push to eliminate forced labour from global supply chains rather than a standard trade dispute.
The tariffs follow a monthslong Section 301 investigation into 60 economies, including two rounds of public hearings and consultations with more than 45 governments. The US determined these economies had failed to impose or effectively enforce prohibitions on importing goods made with forced labour, a finding officials said justified the new duties. Pakistan had submitted detailed responses to the USTR during the investigation, including an additional filing ahead of bilateral trade talks earlier this month.
The Supreme Court struck down Trump’s broader “reciprocal” tariffs in February, ruling that duties imposed under the International Emergency Economic Powers Act were unlawful. The administration responded by invoking a temporary Section 122 tariff, which was limited to 150 days and expired this week, prompting the shift to the more durable Section 301 authority used in Friday’s action. Trade lawyers say Section 301 tariffs have historically withstood legal challenges more successfully than the emergency-powers tariffs that were struck down.
Under the new structure, a 10 percent tariff applies to Pakistan, India, Bangladesh, Canada, Mexico, Indonesia, Jordan, Malaysia, Sri Lanka, the United Kingdom, and several other countries, while 38 additional economies, including China, face a 12.5 percent rate. Some countries with existing trade agreements, such as the European Union, Japan, and South Korea, were assigned combined rates depending on their current most-favoured-nation tariffs.
The new duties exclude several categories of goods, including crude oil, natural gas, fertiliser, certain food products, aircraft parts, and critical minerals. Products already subject to separate national-security tariffs, such as steel, aluminium, copper, and automobiles, are also unaffected by the new rates.
Reaction from other affected countries has been mixed. Japan said it regretted the move, while Australia’s trade minister called the tariffs unjustified and inconsistent with the existing free trade agreement between the two countries. Norway said the measure was based on unsubstantiated claims.
The implications for Pakistan’s export sector, particularly textiles, remain to be assessed as businesses and trade officials review the new rate structure. Authorities have not yet issued a detailed public response on how Islamabad intends to address the forced-labour concerns raised in the US investigation.
