Pakistan could face new trade headwinds after the United States proposed imposing a 10 percent tariff on imports from the country over concerns related to forced labour enforcement, according to a report by Reuters.
The proposal has been put forward by the Office of the United States Trade Representative as part of a broader trade action targeting 60 economies.
The move is linked to the US administration’s efforts to revive its tariff framework following legal setbacks to earlier measures.
Forced Labour Enforcement Cited
According to the USTR, Pakistan was among six economies found to have failed to effectively enforce prohibitions on the import of goods produced using forced labour.
The agency said weak enforcement undermines global efforts to eliminate forced labour from supply chains and places American workers at a competitive disadvantage.
Under the proposal, Pakistan would face a 10 percent tariff alongside countries including Canada, Mexico, Indonesia, the European Union, Bangladesh, Malaysia, Taiwan, Cambodia, Argentina, Guatemala, El Salvador and the United Kingdom. Another group of 45 economies could be subjected to even higher duties of up to 12.5 percent.
Investigations Into Trade Partners
The proposed tariffs follow investigations launched by Washington to assess whether trading partners had taken adequate steps to block imports linked to forced labour and whether enforcement gaps distorted US commerce.
US Trade Representative Jamieson Greer said the failure of key partners to address forced labour concerns was unacceptable. He argued that American workers should not be forced to compete on what he described as an uneven playing field.
Consultation Process Open
The tariffs are not yet final. The USTR has opened a public consultation process, with written submissions invited until July 6. Public hearings will be held before any final determination is made.
The proposal comes ahead of the July 24 expiry of a temporary 10 percent tariff imposed under the Donald Trump administration after the US Supreme Court struck down earlier tariff measures introduced using emergency powers legislation.
Potential Impact on Pakistan
If implemented, the tariffs could pose fresh challenges for Pakistani exporters at a time when export growth remains sluggish. Pakistan’s exports have hovered between $25 billion and $30 billion for nearly two decades, despite repeated policy efforts to expand overseas sales and strengthen foreign exchange inflows.
Trade officials and exporters warn that additional US tariffs could further erode competitiveness in one of Pakistan’s most important export markets, particularly for textiles and value-added goods.
The final outcome will depend on the consultation process and whether Pakistan can address US concerns before a decision is taken.
