USTR Proposes New Tariffs on 60 Economies Over Forced Labor Concerns

The Office of the United States Trade Representative (USTR) has proposed imposing additional tariffs of 10% or 12.5% on imports from 60 economies, following a determination that these economies have failed to impose or effectively enforce prohibitions on importing goods produced with forced labor. The proposals are subject to public comment and hearings before any final decision.

Determination and Legal Basis

The USTR determined that 60 economies have failed to impose or effectively enforce a prohibition on importing goods made with forced labor. Under Section 301 of the Trade Act of 1974, this failure was deemed "unreasonable" and found to "burden or restrict U.S. commerce."

The investigations were self-initiated on March 12, 2026. USTR reported receiving testimony from nearly 60 witnesses and 500 comments during the investigative process.

This action follows a February 2026 U.S. Supreme Court ruling that struck down previous tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA). The administration is now utilizing Section 301, which has withstood prior legal challenges.

Proposed Tariff Rates

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

• 10% additional duty: for economies that impose a forced labor import prohibition, have committed to do so via an Agreement on Reciprocal Trade, or have a partial regime preventing certain forced labor goods.
• 12.5% additional duty: for all other economies.

A textile mechanism is under consideration that would allow reduced tariff rates for certain apparel and textile imports from specific economies if those economies import an equal quantity of American textiles.

Listed Economies

54 economies determined to have failed to impose an import prohibition:

Algeria, Angola, Argentina, Australia, the Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Chile, China (PRC), 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, Vietnam.

6 economies determined to have failed to effectively enforce a prohibition:

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

Proposed Exemptions

Certain goods are proposed for exemption from the additional tariffs, including:

• Tomatoes, bananas, coffee, beef
• Certain textiles (subject to the proposed textile mechanism)
• Aircraft parts
• Rare earth minerals
• Goods from Canada and Mexico covered by the USMCA

Official Statements

USTR Ambassador Jamieson Greer stated: "The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field."

Bernd Lange, chair of the European Parliament's trade committee, said: "Accusing EU of not doing enough against forced labour is absurd. The EU has adopted the world's most stringent rules against products made with forced labour."

Chinese Foreign Ministry spokesperson Mao Ning stated: "There is no such thing as forced labor in China, and we oppose using it as an excuse to engage in political manipulation."

Canadian Prime Minister Mark Carney indicated his government will soon introduce legislation on forced labor in supply chains.

Marco Forgione, director general at the Chartered Institute of Export & International Trade in the UK, described the update as "disappointing but not surprising" and urged continued diplomatic engagement.

Timeline and Next Steps

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

The tariffs would not take effect immediately. Analysts suggest the outcome is largely predetermined, with trade lawyer Ryan Majerus noting the forced labor investigation is "working at about two times the normal speed" and expecting new tariffs to be ready by the time temporary tariffs expire next month.

Temporary 10% globally-applied tariffs imposed under Section 122 of the Trade Act of 1974 are set to expire July 24. Treasury Secretary Scott Bessent stated that the Section 301 tariffs are legally "more robust" and could replace the Section 122 tariffs within months.

Background Context

Related Investigations

USTR has separately initiated Section 301 investigations into "structural excess capacity" in 16 economies, including China, the European Union, India, Japan, South Korea, Mexico, Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland, and Norway. Canada was not included in this probe.

The USTR office also separately proposed 25% tariffs on imports from Brazil, citing trade practices deemed unreasonable.

Forced Labor Data

The USTR report cited an estimate by the UN's International Labor Organization that 27.6 million people were engaged in forced labor globally 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.

Trade Agreement Context

The European Union recently approved a tariff deal with the U.S. to cap tariffs on most EU exports at 15%. The future of this agreement is currently uncertain, with the EU pausing its final ratification process following the Supreme Court decision and other bilateral issues.

President Trump recently visited China to discuss market access and investment, agreeing to set up separate trade and investment boards.

Tariff collections fell to $22 billion in March and April, down from a peak of $31 billion last October.