USTR Recommends New Tariffs Following Forced Labor Investigations

On June 2, 2026, the United States Trade Representative (USTR) determined that the acts, policies, and practices of 60 countries¹  unfairly burdened and restricted the commerce of the United States through their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor. After initiating an investigation in March under Section 301 of the Trade Act of 1974, USTR is now proposing that countries that are partially combating the use of forced labor be subject to Section 301 tariffs of 10%. Similarly, countries that have failed to take any steps to combat the use of forced labor will face a Section 301 tariff of 12.5%. According to USTR, the 60 targeted countries account for 99.4% of all U.S. imports.

USTR initiated the forced labor investigations on March 12, shortly after the Supreme Court struck down the Trump administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs. The Trump administration has also used other legal authorities to impose tariffs, such as Section 122 of the Trade Act of 1974. Currently, the 10% Section 122 tariffs are set to expire by July 24, 2026. When implemented, Section 301 tariffs last for four years before undergoing a renewal review process. USTR is currently requesting comments as part of the second renewal process for the Section 301 tariffs on China for intellectual property theft imposed in 2018. 

All 60 countries targeted by USTR’s Section 301 Forced Labor investigations were determined to have failed to effectively combat the use of forced labor in the importation of goods. Of the investigated countries, six (Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan) were determined to have forced labor prohibition policies but failed to properly enforce them. An additional nine countries (Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia, and Taiwan) had undertaken commitments to combat forced labor as part of their Reciprocal Trade Agreements with the United States. One country (United Kingdom) was determined to have a partial regime in place to combat the use of forced labor. USTR has proposed 10% tariff for these 16 countries. USTR recommends a 12.5% duty rate for the remaining 44 countries. USTR also proposed a mechanism allowing for a certain volume of textile products to be imported at lower rates from select countries. 

USTR proposed a list of provisions under the Harmonized Tariff Schedule of the United States (HTS) that are excluded from the scope of the tariffs. Additionally, goods subject to Section 232 duties, USMCA-compliant goods, and CAFTA-DR textile and apparel articles are excluded from the new Section 301 duties. 

USTR is accepting written comments on the scope of the proposed action until July 6, 2026, regarding which products should be covered by the Section 301 tariffs. U.S. industry is invited to comment regarding the specific products to be subject to the additional duties, which products and HTS codes should be excluded, and the proposed duty rates for individual countries. By submitting comments, U.S. companies, industry groups, and trade associations have a strategic opportunity to influence USTR’s Section 301 actions regarding forced labor prohibitions. Parties will be able to assist in ensuring issues of particular concern are prioritized in USTR’s Section 301 investigation. A separate exclusion process is unlikely, as USTR has indicated it prefers to handle exclusions through the use of public comments. 

Buchanan has a team of international trade and national security attorneys and government relations professionals ready to help U.S. manufacturers with U.S. trade remedy laws and trade policy, including Section 301 investigations, Section 232 investigations, and AD/CVD investigations. U.S. AD/CVD tariff laws are one of the only available tools to reestablish an even playing field for American companies and avoid lost sales and profits. Our eBook, Trade Remedy Investigations Handbook, shares details on how diverse domestic industries can take advantage of these laws – antidumping and countervailing duty investigations – to combat unfair foreign competition and receive adequate remedies and protections. Our dedicated team has decades of experience supporting clients across a range of industries – ranging from steel, chemical, rubber, mining, and agricultural products – to ensure that the U.S. market is operating under fair and equal conditions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.