The US Trade Representative has proposed additional tariffs of 10–12.5% on imports from 60 economies after Section 301 investigations found that all had failed to adequately prohibit the importation of goods made with forced labour — with a reduced rate applying to those that have taken steps toward enforcement. Public hearings are scheduled for 7 July 2026, with written comments due the day before.
The United States Trade Representative (USTR) released its findings and proposed measures on 2 June 2026 following the Section 301 investigations launched in March 2026 into 60 countries and economies to assess whether foreign governments have taken adequate measures to prevent the importation of goods produced with forced labour.
(USTR has prepared a comprehensive report, Acts, Policies, and Practices of Various Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labour, that supports the findings in each investigation.
“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” said Ambassador Jamieson Greer. “We will no longer tolerate this disparity. Some trading partners have taken initial steps to prevent the importation of forced labour goods, including through USMCA and commitments in Agreements on Reciprocal Trade. However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labour globally.”
As a result of these determinations in the investigations, the US Trade Representative has proposed responsive action for public comment.
Specifically, the US Trade Representative proposes additional duties on all products of the investigated economies, except as provided in Annex A to the Federal Register notice. For economies that impose a forced labour import prohibition, that have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade, or economies that have imposed a partial regime with the effect of preventing the importation of certain forced labour goods, the US Trade Representative proposes 10% as the rate of additional duties. For all other economies, the US Trade Representative proposes 12.5% as the rate of additional duty. The US Trade Representative also proposes a textile mechanism that would allow for a certain volume of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate.
To be assured of consideration, interested persons should submit requests to appear at the hearings, along with a summary of testimony by 22 June 2026.
Written comments are due by 6 July 2026.
USTR will hold hearings about the proposed actions in these investigations on 7 July 2026.
Background
Section 301 of the Trade Act of 1974, as amended (Trade Act), is designed to address unfair foreign acts, policies, or practices affecting US commerce. Section 301 may be used to respond to unjustifiable, unreasonable, or discriminatory foreign government acts, policies, or practices that burden or restrict US commerce. Under Section 302(b) of the Trade Act, the Trade Representative may self-initiate an investigation under Section 301.
On 12 March 2026, the US Trade Representative initiated 60 investigations related to the failure of various economies to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.
Pursuant to Section 304(b)(1)(A) of the Trade Act, USTR provided the public and interested persons with opportunities to present their views through a public comment process and through a public hearing. USTR received testimony of nearly 60 witnesses and 500 comments and rebuttal comments.
The US Trade Representative has determined that the failure of each of the 60 investigated economies to impose and effectively enforce a forced labour import prohibition is unreasonable or discriminatory and burdens or restricts US commerce, and thus is actionable under Section 301(b)(1) of the Trade Act. In particular, the US Trade Representative determined:
- The following 54 economies have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labour:
- Algeria; Angola; Argentina; Australia; the Bahamas; Bahrain; Bangladesh; Brazil; Cambodia; Chile; China, People’s Republic of; Colombia; Costa Rica; Dominican Republic; Egypt; El Salvador; Guatemala; Guyana; Honduras; Hong Kong, China; India; Iraq; Israel; Japan; Jordan; Kazakhstan; Kuwait; Libya; Malaysia; Morocco; New Zealand; Nicaragua; Nigeria; Norway; Oman; Peru; the Philippines; Qatar; Russia; Saudi Arabia; Singapore; South Africa; South Korea; Sri Lanka; Switzerland; Taiwan; Thailand; Trinidad and Tobago; Türkiye; United Arab Emirates; United Kingdom; Uruguay; Venezuela; and Vietnam.
- The following six economies have failed to effectively enforce a prohibition on the importation of goods produced with forced labour: Canada; Ecuador; the European Union; Indonesia; Mexico; and Pakistan.
- Therefore, all of the investigated economies have failed both to impose a forced labour import prohibition and to effectively enforce such a prohibition.
- The failure of each of the investigated economies to impose and effectively enforce a forced labor import prohibition is unreasonable because it: (1) undermines the universal aim of eliminating forced labor; (2) permits firms that avail themselves of forced labor to produce goods at lower cost and thereby distort market conditions for firms that do not use forced labor; (3) undermines the profitability of firms that do not use forced labor; and (4) contributes to the circumvention of existing forced labor import prohibitions.
- The failure of each of the above-listed economies to impose and effectively enforce a forced labour import prohibition burdens or restricts US commerce by subjecting US producers to unfair competition from forced labour goods both in export markets and the US market, and by displacing foreign goods produced without forced labour or forced labour inputs into the United States and other markets.
The US Trade Representative has also determined to propose responsive actions in these investigations. As set out in the Federal Register notice, the public is invited to provide written comments by 6 July 2026 on the proposed actions.
USTR will hold hearings about the proposed actions on 7 July 2026. As set out in the Federal Register notice, interested persons are invited to submit requests to appear at the hearing by 22 June 2026.
