Washington: Taiwan is among 60 economies determined by the United States to have failed to impose or enforce a ban on the importation of goods produced with forced labor, according to a notice released Tuesday by the Office of the United States Trade Representative (USTR), which proposed imposing an additional 10 percent tariff on them.
According to Focus Taiwan, the USTR said in a news release that following an investigation, it had determined under Section 301 of the Trade Act that the failure of the 60 economies to effectively enforce a prohibition on the importation of goods produced with forced labor is "unreasonable" and "burdens or restricts" U.S. commerce. The probe was initiated on March 12, shortly after the U.S. Supreme Court struck down previous global tariffs imposed by President Donald Trump, seen as an effort to renew tariff pressure on trading partners.
The USTR notice mentioned that Taiwan has "undertaken commitments" to ban goods produced with forced labor in the Agreement on Reciprocal Trade (ART), signed with the U.S. in February. Taiwan is categorized alongside economies like Bangladesh, Cambodia, Indonesia, and Malaysia, which have made similar pledges. Other economies, such as Canada, the European Union, Mexico, and Pakistan, have imposed but not effectively enforced such bans, while the United Kingdom has only a "partial ban."
The office proposed a 10 percent tariff on 14 economies, while the remaining 46, including Japan, South Korea, China, and India, could face a 12.5 percent tariff for failing to effectively enforce a forced labor import prohibition.
An accompanying USTR report highlighted Taiwan's steps toward implementing its ART commitment with the U.S. to prohibit goods produced with forced labor. However, it noted that Taiwan has not yet legally banned such imports. The Taiwanese government acknowledged that the USTR's proposals are not final and can be contested within five days following a hearing scheduled for July 7.
Taiwan's Cabinet stated that the proposed tariff will not take immediate effect and will not be added to existing tariffs under Section 232 of the Trade Expansion Act. The results of the Section 301 probe will be unveiled in late July, and the Cabinet expressed optimism about Taiwan's chances of receiving favorable treatment in trade discussions with the U.S. while maintaining the positive terms secured in previous talks.