Taipei: Taiwan will establish a review mechanism to restrict imports of goods linked to forced labor, the Executive Yuan announced Thursday, following the United States’ proposal to impose additional tariffs on Taiwanese goods over related concerns. “The Ministry of Labor (MOL) and the Ministry of Economic Affairs (MOEA) will establish an interministerial review procedure,” Executive Yuan spokesperson Michelle Lee stated during a news briefing.

According to Focus Taiwan, the government plans to use the Foreign Trade Act as the legal basis to restrict imports of goods produced with forced labor, aiming to align its supply chain governance with international standards on human rights, resilience, and sustainability. This announcement follows the U.S. Trade Representative’s (USTR) investigation, which identified Taiwan among 60 economies that failed to enforce bans on goods produced through forced labor.

The USTR described this failure as “unreasonable,” stating it burdens U.S. commerce. Consequently, they proposed an additional 10 percent tariff on 14 economies, including Taiwan, with the remaining 46 potentially facing a 12.5 percent tariff. The investigation not only focused on imports into Taiwan but also scrutinized Taiwan-made goods for forced labor concerns.

In September 2025, U.S. Customs and Border Protection issued a withhold release order on bicycles and related products from Giant Manufacturing Co. in Taiwan, citing forced labor indicators such as wage withholding and excessive overtime. Benjamin Hsu, from the Executive Yuan’s Office of Trade Negotiations, indicated that the government is assisting businesses to prevent forced labor. This includes proposed amendments to the Employment Service Act, currently awaiting legislative approval, aimed at prohibiting employers from withholding workers’ identity documents or property.