A US government hearing on Wednesday examined a proposal to impose new tariffs on goods linked to forced labour, with participants sharply divided over the economic and ethical implications of the measure.
The session highlighted the growing tension between trade policy objectives and supply chain realities as the US Trade Representative (USTR) considers expanding its enforcement toolkit against China.
Business groups testified that higher tariffs would likely raise costs for consumers and disrupt established supply chains, arguing that existing measures are sufficient to address labour concerns.
In contrast, labour advocates urged the USTR to adopt a more aggressive stance, contending that stronger financial penalties are necessary to deter alleged human rights abuses and improve worker protections.
The hearing comes as the United States nears the end of a separate investigation into alleged forced labour practices in Malaysia, where officials are preparing to impose an indicative 10% tariff if findings are confirmed.
This broader scrutiny of Asian supply chains reflects a sustained effort by US lawmakers to leverage trade policy on labour standards, with bipartisan support for releasing long-awaited reports on illegal labour practices.