SG exporters at risk of 12.5% US tariff over forced labour probe

Written comments are due by 6 July, with USTR hearings set for 7 July. 

Singapore could face a 12.5% US tariff on exports after an American trade agency faulted 60 economies over forced-labour import controls.

In an Office of the United States Trade Representative (USTR) statement, the economies had failed to impose or effectively enforce bans on imports of goods produced with forced labour.

The finding was made under Section 301 of the Trade Act of 1974, which allows the US to respond to foreign acts, policies or practices deemed unreasonable, discriminatory or restrictive to American commerce.

Singapore was listed amongst 54 economies that the USTR said had failed to impose and effectively enforce the prohibition.

The agency has also proposed a textile mechanism that would allow for a certain volume of apparel and textile imports from certain economies to enter the US at a reduced Section 301 tariff rate.

The proposed tariff is not yet final, as the authority is seeking public comments on the proposed action until 6 July, whilst hearings are scheduled for 7 July.

Under the proposal, economies that already impose a forced-labour import ban, have committed to one through a reciprocal trade agreement, or have a partial regime covering certain forced-labour goods, would face an additional 10% duty.

All other investigated economies would face an additional 12.5% duty.

The investigations were initiated on 12 March and covered Singapore, Australia, Canada, the European Union, Japan, South Korea, New Zealand, and the UK.

In an earlier statement, Singapore’s Ministry of Trade and Industry said the city-state was included in the Section 301 investigation into forced-labour import policies. 

The government also submitted written comments to the agency on the probe.