Southeast Asia’s extensive supply chains could be disrupted if it faces planned US tariffs over Washington’s accusations of forced labour in 60 economies, as analysts say the proposal is just a way for President Donald Trump to resurrect his trade levy agenda.
Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam are among the economies flagged by the US for purportedly failing to prevent goods made with forced labour from reaching its market.
Washington said the proposed tariffs, which range from 10 per cent to 12.5 per cent, were aimed at countries that it assessed had not done enough to tackle the problem. The tariffs have not yet taken effect.
Advertisement
The listed economies that have imposed forced-labour import bans, partial restrictions or binding commitments to strengthen enforcement would face a lower rate, while those without such measures could face a higher rate.
The relevant governments can challenge their inclusion before a July 6 deadline through written comments, with the US scheduled to hold hearings from July 7, after which it will reach a decision.
Advertisement
US Trade Representative (USTR) Jamieson Greer said in a statement released on June 2: “The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”
