Pakistan among 60 economies that could face U.S. forced labor tariffs

June 03, 2026 (MLN): Pakistan can face an additional 10% tariff on its exports to the United States under a proposal by the Trump administration, which is seeking to impose fresh duties on imports from 60 economies over their alleged failure to curb trade in goods made with forced labor.

The U.S. Trade Representative's office unveiled the proposal  the latest finding from a Section 301 unfair trade practices investigation  as the administration works to rebuild its emergency tariffs after the U.S. Supreme Court struck them down in February, according to Reuters.

The U. S. A. absorbed $477.28 million worth of Pakistani exports in March, down 10.3% from $531.95 million in the same month last year.

A fresh 10% levy, if confirmed would land on top of that existing weakness, raising the cost of Pakistani goods for American buyers at a time when the country's exporters are already navigating a difficult pricing environment.

Countries placed in the 10% bracket alongside Pakistan include Canada, Ecuador, the European Union, Indonesia, Mexico, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Britain.

The remaining 45 economies under investigation face steeper duties of 12.5%.

The USTR also proposed a textile mechanism that would allow a certain volume of apparel and textile imports to enter the U.S. at a reduced tariff rate, though specific duties and volume thresholds were not disclosed.

The announcement comes ahead of the July 24 expiration of a 10% temporary tariff imposed on February 20  the same day the Supreme Court invalidated President Donald Trump's broader tariff authority under the International Emergency Economic Powers Act.

The forced labor tariffs exempt a range of products including energy, rare earths, certain metals, beef, coffee, select fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts.

The USTR said it would accept public comments through July 6, with a public hearing set for July 7.

On Monday, the agency separately proposed a 25% duty on many Brazilian goods over digital trade practices and preferential tariffs, and is expected to soon release findings from a major Section 301 probe into excess industrial capacity across 16 trading partners, including China.

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