World

Trump proposes new tariffs on 60 economies over forced labour concerns, Malaysia included

The sweeping trade measures arose after US officials say goods produced with forced labour are inadequate and harmful to American commerce

Updated 2 months ago · Published on 03 Jun 2026 4:02PM

Trump proposes new tariffs on 60 economies over forced labour concerns, Malaysia included
Trump administration brings about fresh tariffs of up to 12.5 per cent on imports from 60 economies, including Malaysia, the European Union, the United Kingdom and Canada - June 3, 2026

THE United States is preparing a sweeping new round of trade measures targeting 60 economies, as President Donald Trump's administration moves to impose additional tariffs on imports linked to what it describes as inadequate efforts to prevent goods produced with forced labour from entering global supply chains.

The proposal, announced by the Office of the United States Trade Representative (USTR), marks the latest escalation in Washington's efforts to rebuild its trade enforcement framework following the collapse of earlier emergency tariffs that were struck down by the US Supreme Court in February.

Reuters reported on Wednesday that under the proposal, imports from a group of major trading partners, including Malaysia, the European Union, the United Kingdom, Canada, Mexico, Indonesia, Pakistan, Bangladesh, Cambodia, Taiwan, Argentina, Ecuador, El Salvador and Guatemala, would face an additional 10 per cent tariff.

A further 45 economies investigated under the same review would be subjected to even higher duties of 12.5 per cent.

The measures stem from a Section 301 investigation, a trade enforcement mechanism used by Washington to address what it considers unfair foreign trade practices.

US Trade Representative Jamieson Greer (pic) said the findings reflected growing concern that trading partners had failed to take sufficient action against products allegedly manufactured using forced labour.

"The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable," Greer said.

"This creates a dynamic where American workers are forced to compete globally on an unlevel playing field."

The proposal forms part of a broader effort by the Trump administration to reshape international trade relationships through tougher enforcement measures and targeted tariffs.

The announcement comes ahead of the July 24 expiry of a temporary 10 per cent tariff introduced by the administration after the Supreme Court invalidated earlier emergency duties imposed under the International Emergency Economic Powers Act.

Expanding Trade Pressure

The forced labour tariff proposal follows a series of aggressive trade actions unveiled by Washington in recent days.

Earlier this week, the USTR proposed a 25 per cent tariff on a range of Brazilian imports following a separate Section 301 investigation into Brazil's digital trade policies and tariff structures.

US trade officials are also expected to release the findings of another major investigation examining industrial overcapacity across 16 trading partners, including China.

The latest proposal underscores the administration's increasing focus on supply chain scrutiny and labour standards as key elements of trade policy.

Exemptions For Strategic Goods

Despite the broad scope of the proposed measures, the USTR said several categories of products would be exempt from the new duties.

These include energy products, rare earth materials, selected industrial metals, pharmaceuticals, organic chemicals, aircraft parts, beef, coffee and certain fruit and vegetable imports.

The exemptions reflect Washington's desire to avoid disruptions to strategic industries and critical supply chains while maintaining pressure on targeted trading partners.

The USTR has opened a public consultation process on the proposed tariffs and related measures, with submissions accepted until July 6.

A public hearing on the proposals is scheduled for July 7, after which the administration is expected to decide whether to implement the tariffs.

If approved, the measures would represent one of the most extensive trade actions undertaken by the Trump administration since returning to office, potentially affecting hundreds of billions of dollars in global trade and increasing pressure on major US trading partners to strengthen oversight of labour practices within their supply chains. - June 3, 2026

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