Pakistan May Face Additional US Tariffs Over Labour Compliance Concerns
Pakistan could face additional tariffs on exports to the United States after the Office of the United States Trade Representative (USTR) proposed a 10 percent duty on imports from several economies, citing concerns about the enforcement of restrictions on goods linked to forced labour.
According to international media reports, the proposal is part of a broader trade review involving around 60 economies. US authorities stated that several trading partners, including Pakistan, had not sufficiently enforced measures aimed at preventing products associated with forced labour from entering international supply chains.
Under the proposal, Pakistan would be subject to a 10 percent tariff, along with a number of other economies, including Canada, Mexico, Indonesia, Bangladesh, Malaysia, Taiwan, Cambodia, Argentina, Guatemala, El Salvador, the United Kingdom, and the European Union. A separate group of countries could face higher duties of up to 12.5 percent.
The USTR said the proposed action follows investigations into whether trading partners have taken adequate steps to address concerns related to forced labour and whether any shortcomings could impact fair trade practices.
US Trade Representative Jamieson Greer emphasized the importance of maintaining fair competition and ensuring compliance with international labour standards.
The proposed tariffs have not yet been finalized. The USTR has opened a public consultation period, with written submissions accepted until July 6. Public hearings are expected before a final decision is made.
If approved, the additional tariffs could create challenges for Pakistani exporters, particularly as the country continues efforts to expand exports and strengthen foreign exchange earnings. Pakistan’s exports have generally remained within the $25 billion to $30 billion range over the past two decades despite various initiatives aimed at increasing overseas sales.
The proposal comes ahead of the July 24 expiration of a temporary 10 percent tariff that was introduced following legal developments affecting earlier US trade measures.
