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U.S. Proposes Section 301 Tariffs on 60 Economies Citing Failure to Enforce Forced Labor Import Bans

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USTR Proposes New Tariffs on 60 Economies Over Forced Labor Enforcement

The Office of the United States Trade Representative (USTR) has proposed additional tariffs on imports from 60 economies, concluding that these trading partners have failed to adequately enforce prohibitions on goods made with forced labor.

The proposed duties, set at 10% or 12.5% depending on the country, are subject to a public comment period and hearings before they can take effect. The action is the latest phase of the U.S. administration's trade policy following a Supreme Court ruling that invalidated previous tariffs imposed under a different legal authority.

Legal Basis and Determination

The tariffs are proposed under Section 301 of the Trade Act of 1974, following investigations initiated by the USTR on March 12, 2026. The USTR determined that the failure of these 60 economies to impose and effectively enforce a prohibition on importing goods produced with forced labor is "unreasonable and burdens or restricts U.S. commerce."

U.S. Trade Representative Jamieson Greer stated that the failure of trading partners to address the importation of goods made with forced labor "creates a dynamic where American workers are forced to compete globally on an unlevel playing field."

The investigations and proposed tariffs follow a U.S. Supreme Court ruling in February 2026 that struck down President Donald Trump's country-specific tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The court ruled that the president had exceeded his authority under that law. Following that decision, the administration imposed a temporary 10% global tariff under Section 122 of the Trade Act of 1974, which is permitted for 150 days and expires July 24, 2026. The administration is now seeking to replace those temporary tariffs with the more legally robust Section 301 framework.

Proposed Tariff Rates

The USTR proposes two tiers of additional duties on all products from the identified economies:

  • 12.5% tariff: Imposed on economies that have not imposed or committed to an import prohibition on forced labor goods.
  • 10% tariff: Imposed on economies that have imposed a forced labor import prohibition, have committed to doing so, or have a partial regime.

Economies Subject to Proposed Tariffs

Failing to impose an import prohibition (subject to 12.5% tariff):

Algeria, Angola, Argentina, Australia, the Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Chile, China (including Hong Kong), Colombia, Costa Rica, Dominican Republic, Egypt, El Salvador, Guatemala, Guyana, Honduras, 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, Vietnam.

Failing to effectively enforce a prohibition (subject to 10% tariff):

Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan.

Exemptions

The USTR has proposed exemptions for a range of goods, including:

  • Certain food products (beef, tomatoes, coffee)
  • Certain metals
  • Rare earth minerals
  • Aircraft parts
  • Goods from Canada and Mexico covered by the United States-Mexico-Canada Agreement (USMCA)
  • Most electronics, including consumer devices and semiconductors (which have been exempt under previous U.S. tariffs)

A textile mechanism is also under consideration, which would allow reduced tariff rates for certain apparel and textile imports if countries import an equal quantity of American textiles.

Timeline and Next Steps

The proposed tariffs will not take effect immediately. The process requires:

  • June 22, 2026: Deadline for requests to appear at hearings and submission of summary of testimony
  • July 6, 2026: Deadline for written public comments
  • July 7, 2026: Public hearings begin

The USTR aims to conclude the Section 301 investigations and implement new tariffs before the temporary Section 122 tariffs expire on July 24, 2026. Trade analysts have noted that the forced labor investigation is proceeding at approximately twice the normal speed.

Background

The USTR report cited an estimate by the UN's International Labor Organization that 27.6 million people were engaged in forced labor as of 2021. Products mentioned as prone to involving forced labor include rice from Myanmar, tobacco from Malawi, beef from Brazil, and cotton and polysilicon from China.

The administration is also pursuing separate Section 301 investigations into 16 trading partners (China, the European Union, India, Japan, South Korea, Mexico, Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland, and Norway) regarding "structural excess capacity" in manufacturing sectors.

International Reactions

Responses from affected economies have varied:

  • Australia: Trade Minister Don Farrell stated the tariffs are "unjustified, inconsistent with our free trade agreement, and should be removed," noting Australia's measures against forced labor.

  • Canada: Prime Minister Mark Carney stated his government will soon introduce legislation on forced labor in supply chains.

  • China: Foreign Ministry spokespersons Mao Ning and Guo Jiakun stated there is "no such thing as forced labor in China" and expressed opposition to "political manipulation under this pretext" and unilateral tariff measures.

  • European Union: Bernd Lange, chair of the European Parliament's trade committee, called the accusations "absurd," stating the EU has adopted "the world's most stringent rules against products made with forced labour." EU foreign policy chief Kaja Kallas questioned the rationale, noting EU labor laws are strong.

  • Japan: Chief Cabinet Secretary Minoru Kihara expressed regret, stating Japan follows international rules, and noted Japan is reviewing the probe's details.

  • New Zealand: Prime Minister Christopher Luxon said the tariffs were "extremely disappointing" and lacked evidence.

  • United Kingdom: A government official stated the UK takes forced labor seriously in supply chains. Marco Forgione, director general at the Chartered Institute of Export & International Trade, described the update as "disappointing but not surprising" and urged continued diplomatic engagement.