The Trump administration proposed imposing additional taxes on 60 economies

June 2, Reuters said that the Office of the US Trade Representative (USTR) announced the conclusion of an investigation under Article 301 on unfair trade practices.

Accordingly, USTR believes that 60 economies have not taken reasonable measures to prevent the circulation of products produced with forced labor, causing disadvantages for the US in trade competition.

Therefore, this agency proposes to impose an additional tax of 10% on goods from Canada, Ecuador, EU, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and the UK. For the remaining 45 economies under investigation, including Vietnam, the additional tax rate is 12.5%.

US Trade Representative Jamieson Greer said it was “unacceptable” for partners to not address the import of goods produced with forced labor. “This leaves American workers competing in an unfair global marketplace,” he said.

Regarding the proposed additional tax rate with Vietnam, responding at a regular press conference on the afternoon of June 4, Foreign Ministry Spokesperson Pham Thu Hang said the USTR’s investigation conclusion “does not accurately reflect the reality and Vietnam’s efforts in preventing and minimizing forced labor”.

The spokesperson of the Ministry of Foreign Affairs affirmed Vietnam’s consistent policy of prohibiting all forms of forced labor, complying with regulations of the International Labor Organization (ILO), free trade agreements and ensuring implementation in practice.

Ms. Hang said that Vietnam has exchanged and provided complete information during the investigation process and will continue to work with the US side in a constructive and cooperative spirit to resolve remaining disagreements on the basis of bilateral and multilateral cooperation. This is in an effort to protect the legitimate interests of Vietnamese workers and businesses.

USTR will hold a public hearing on July 7. This agency also proposed a separate mechanism for the textile industry, allowing a certain amount to enjoy lower tax rates when entering the US, but specific details have not been announced.

After multiple import tariffs invoking the International Emergency Economic Rights Act (IEEPA) were rejected by the US Supreme Court in February, USTR launched investigations under Article 301.

Article 301 allows the president to impose tariffs in response to unfair foreign trade practices. USTR recently announced the conclusion of investigations under this provision in the context that the temporary 10% tariff issued by President Donald Trump will expire on July 24.

Above CNBCMr. Nick Marro, an expert at the Economist Intelligence Unit (EIU), predicts that the Trump administration will continue to open more investigations and announce new tariff measures, in preparation for the next round of trade negotiations.

Previously, on June 1, USTR proposed to impose a 25% tax on many products from Brazil, after an investigation under Article 301. The agency also plans to soon announce the results of the investigation on industrial overcapacity in 16 trading partners.

Ms. Deborah Elms, Trade Policy Director of the Hinrich Foundation, said that although the tariffs under Article 301 can be adjusted, any significant changes will impact the global supply chain and the supply of businesses.