Why US trade body has proposed fresh tariffs on Bangladesh

The Office of the United States Trade Representative (USTR) has proposed an additional 10% tariff on imports from Bangladesh as part of a broader action targeting 60 economies over alleged failures to address forced labour-linked trade, according to Reuters.

The proposal is not final and remains subject to a public consultation process.

The move stems from a Section 301 investigation launched by the USTR in March to examine whether countries had failed to prohibit the import of goods produced wholly or partly with forced labour, or had failed to enforce such prohibitions effectively.

According to the USTR, such failures are "unreasonable" and "burden or restrict US commerce."

US Trade Representative Jamieson Greer said the proposal was aimed at addressing what Washington sees as an unfair disadvantage for American workers.

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

"This creates a dynamic where American workers are forced to compete globally on an uneven playing field," he added.

Bangladesh was included in the group of economies facing a proposed 10% tariff, alongside countries and blocs such as Canada, the European Union, Mexico, Pakistan, Cambodia, Malaysia, Taiwan and the United Kingdom. Another 45 economies were assigned a proposed tariff rate of 12.5%.

The USTR will accept public comments on the proposal until 6 July and hold a public hearing on 7 July before making a final determination.

If approved, the measure would form part of Washington's broader effort to tighten enforcement against forced labour-linked trade.