The following trade update is courtesy of the Hardwood Federation.
Last night, using authority under Section 301 of the Trade Act of 1974, the U.S. Trade Representative announced tariffs on 60 economies for their failure to impose and effectively enforce a prohibition on importation of goods produced with forced labor. The announcement came just hours before the sunset of the Section 122 10 percent tariffs on most of our trading partners and was widely anticipated. These new tariffs effectively replicate the tariffs that expired at midnight and took effect at 12:01 this morning. There are exemptions, but generally the duties fall into the following categories:
- 10 percent on investigated economies that (i) impose a forced labor import prohibition; (ii) have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade; or (iii) have imposed a partial regime with the effect of preventing the importation of certain forced labor goods. These economies are Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
- 10 percent or 12.5 percent (net of Most-Favored-Nation (MFN) rate) on certain products from the European Union, Taiwan, Japan, Korea, and Switzerland that are not otherwise exempted. The Federal Register Notice here provides more detail.
- 12.5 percent for all other investigated economies.
To read USTR’s Fact Sheet, click here. The Hardwood Federation will continue to track the Administration’s tariff activity.