Pakistan could face fresh tariffs on its exports to the United States after the US Trade Representative proposed a 10 percent duty on imports from the country over concerns about the enforcement of restrictions on goods produced with forced labour.
The proposed measure is part of a broader trade action targeting 60 economies as the Trump administration moves to rebuild its tariff framework following legal setbacks to earlier measures.
According to the USTR, Pakistan was among six economies found to have failed to effectively enforce bans on imports made with forced labour. The agency said such shortcomings weaken efforts to keep forced labour out of global supply chains and place American workers at a competitive disadvantage.
Under the proposal, Pakistan would be subject to a 10 percent tariff along with a number of other economies, while a separate group of 45 economies could face even steeper duties of 12.5 percent.
The proposed tariffs follow investigations launched by Washington into whether trading partners had taken sufficient action against imports linked to forced labour and whether those gaps had an impact on US commerce.
US Trade Representative Jamieson Greer said the failure of key trading partners to adequately address forced labour concerns was unacceptable, adding that American workers should not be made to compete on an uneven playing field.
The tariffs have not yet been finalised. The USTR has opened a public consultation process, with written comments to be submitted by July 6. Public hearings will take place before a final decision is announced.
If implemented, the new duties could create added pressure for Pakistani exporters at a time when the country is already struggling to significantly raise export growth.
Pakistan’s exports have largely remained in the range of $25 billion to $30 billion for nearly two decades, despite repeated government efforts to increase overseas sales and strengthen foreign exchange earnings.
The latest proposal comes ahead of the July 24 expiry of a temporary 10 percent tariff imposed by the Trump administration after the US Supreme Court struck down earlier tariff measures introduced under emergency powers.
