Forced-labor hearing clears path for expanded Trump tariffs

A three-day hearing convened by the U.S. Trade Representative (USTR) on July 7 in Washington opened the floor to dozens of stakeholders—government officials, industry groups, and foreign representatives—to debate proposed tariffs targeting imports from 60 countries. The hearings, running through July 9, are part of an investigation launched in March into the forced-labor enforcement policies of major trading partners, including Mexico, Chile, Ecuador, Guatemala, Guyana, Honduras, Peru, India, Jordan, Pakistan, and Brazil. The USTR recommended additional duties of 10% or 12.5% on goods from these economies, arguing that weak forced-labor bans unfairly burden U.S. commerce. Critics, however, dispute both the evidence and the economic rationale behind the tariffs. The administration has signaled plans to restore broader tariff levels before a temporary 10% global duty expires later this month. The USTR’s findings, issued in early June, concluded that none of the 60 countries investigated had effectively enforced a forced-labor import prohibition. The hearings feature testimony from a range of voices: Mexican officials will highlight the USMCA Forced Labor Mechanism, while U.S. steel producers—represented by the American Line Pipe Producers Association and the Steel Manufacturers Association—will advocate for duties to counter alleged surges in steel imports linked to low labor standards and forced labor. The American Petroleum Institute, however, is pushing back, urging the USTR to exempt industrial inputs critical to the oil and gas sector, arguing that these materials cannot be sourced domestically in sufficient quantities and are unrelated to forced labor. Former USTR official Ed Gresser, now at the Progressive Policy Institute, is set to argue that the investigations misapply Section 301 of the Trade Act of 1974, calling the proposed tariffs—estimated to cost Americans roughly $100 billion annually—legally unsound and economically unjustified. On July 8, the Coalition for Fair Trade in Seafood will call for higher tariffs on Vietnamese seafood, citing forced and child labor risks in processing. Representatives from India, Jordan, and Pakistan will also testify, with Pakistan expected to challenge the USTR’s findings as disproportionate and lacking evidence. Human rights organizations, including China Labor Watch, will argue that any preferential tariff treatment should apply only to products verified as free from forced labor. The hearings will conclude on July 9 with testimony from the Footwear Distributors & Retailers of America and the National Council of Textile Organizations. Brazil’s Flávio Bolsonaro, a senator and son of former President Jair Bolsonaro, is slated to testify on July 7, urging the administration not to impose new tariffs on Brazilian exports ahead of October elections or target Pix, Brazil’s instant-payment system. Bolsonaro’s filing to the USTR claims the proposed tariffs would reward the very offenders they aim to punish and could bolster the political standing of President Luiz Inácio Lula da Silva by framing U.S. pressure as an attack on Brazil’s sovereignty.