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The United States is imposing a new set of tariffs effective July 24, affecting around 60 countries including the Philippines, which is part of the cluster facing the highest rate at 12.5% due to supposed imported goods using materials made with forced labor
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The new tariff rates, based on Section 301 of the Trade Act of 1974, comes after the US Supreme Court ruling that struck down Trump’s sweeping tariffs last year based on another law
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Meanwhile, the Philippine Department of Labor and Employment, Department of Trade and Industry, and Department of Finance signed on July 23 a joint administrative order creating a unified committee that will collect reports on imported goods that might involve forced labor
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The committee is headed by DTI and vice-chaired by DOLE, with members including DOF, Bureau of Customs, Board of Investments, and Philippine Economic Zone Authority
The United States is imposing a new set of tariffs effective July 24, affecting around 60 countries including the Philippines, which is part of the cluster facing the highest rate at 12.5% due to supposed goods using materials made with forced labor.
“President (Donald) Trump recognizes that decades of moral suasion have not eradicated forced labor from global supply chains. The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same,” US Trade Representative Jamieson Greer said in a press statement published July 23, US time.
The new tariff rates – based on Section 301 of the Trade Act of 1974 – is slapped on trading partners supposedly for their “failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.” It comes after a US Supreme Court ruling earlier this year that struck down Trump’s sweeping tariffs imposed last year based on the 1977 International Emergency Economic Powers Act.
READ: PHILEXPORT calls for continued dialogues amid new US tariff uncertainty
The Office of the United States Trade Representative said countries that were investigated and found to have partially addressed the forced labor issue are facing a lower 10% rate. These are: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
A 10% or 12.5% net of Most-Favored-Nation rate will be imposed on certain products of the European Union, Taiwan, Japan, Korea, and Switzerland that are not otherwise exempted, as explained in the Federal Register Notice.
The 12.5% tariff rate applies to “all other economies investigated,” including the Philippines.
“Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere. I am encouraged by the trading partners who have moved quickly to adopt forced labor import prohibitions, and look forward to ensuring their effective enforcement,” Greer said.
DOLE-DTI-DOF joint committee
Meanwhile, the Philippine Department of Labor and Employment (DOLE), Department of Trade and Industry (DTI), and Department of Finance (DOF) signed on July 23 a joint administrative order creating a unified committee that will collect reports on imported goods that might involve forced labor, investigate the claims, and advise authorities on how to handle the situation.
The committee is headed by DTI and vice-chaired by DOLE, with members including DOF, Bureau of Customs, Board of Investments, and Philippine Economic Zone Authority.
It will set clear guidelines on monitoring and investigating supply chains to keep local markets clean, fair, and free from goods made through forced labor
“I hope through this mechanism, we will showcase to the entire world, not just the Philippines — not just ASEAN (Association of Southeast Asian Nations) — that the Philippines is trailblazing with respect to prohibition against forced labor, respect to workers’ dignity, as well as the integrity of free trade,” Labor secretary Francis Tolentino said in a statement, which does not mention a link to the new US tariffs.
With the joint committee, concerned government agencies should be able to more easily share information, investigate suspicious shipments, and take action against goods produced through forced labor.
DOLE said the initiative also shields everyday consumers, workers, and legitimate businesses from the harmful effects of unfair and abusive trade.
READ: PH agri exports to US now exempt from 19% reciprocal tariff
