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US proposes tariffs on Malaysia, 59 other economies over forced labour concerns
Gantry cranes tower over stacked shipping containers at the container terminal of the Port of Abidjan in Abidjan, Ivory Coast, May 30, 2026. The United States has proposed new tariffs on Malaysia and 59 other economies over alleged failures to address forced labour, as it seeks to rebuild its tariff framework following legal setbacks. — Reuters pic

WASHINGTON, June 3 — The United States has proposed new tariffs targeting Malaysia and 59 other economies over alleged failures to act against forced labour, as it moves to rebuild its tariff agenda following legal setbacks.

Reuters reported that the US Trade Representative (USTR) proposal outlines duties ranging from 10 per cent to 12.5 per cent, which will undergo a public comment period before any final decision is made.

The move follows earlier investigations into trading partners including China, the European Union and Japan, examining whether they had taken sufficient action to prevent imports of goods made with forced labour and whether such practices affected US commerce.

On Tuesday, the USTR said 54 economies “failed to impose and effectively enforce a forced labour import prohibition”, including China, Vietnam, Taiwan and the United Kingdom.

Six others — Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan — were deemed not to have effectively enforced such prohibitions.

The agency said Malaysia was among the economies listed in the proposed tariff framework.

USTR Jamieson Greer said the findings reflected unacceptable gaps among trading partners in addressing forced labour-linked imports.

“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” he said.

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

The proposed tariffs include exemptions for goods such as beef, coffee and certain fruits and nuts.

Goods from Canada and Mexico that comply with a North American free trade agreement will also be exempt, along with certain textiles and apparel.

The public may submit written comments by July 6, after which the USTR will hold hearings.

The move comes after the US Supreme Court struck down parts of President Donald Trump’s tariff framework in February, prompting officials to pursue new trade actions under Section 301 investigations.

Separately, the USTR has also launched probes into excess industrial capacity among trading partners.

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