USTR imposes Section 301 duties on 60 nations for forced-labor enforcement gaps
On June 2, 2026, the U.S. Trade Representative determined that 60 economies have failed to impose or effectively enforce prohibitions on forced-labor goods imports, triggering Section 301 investigations. USTR proposes additional duties of 10% on products from economies with partial or committed forced-labor regimes, and 12.5% on all others, effective after a public comment period closing July 6, 2026. A textile mechanism will allow reduced tariffs on certain apparel and textiles from select countries. The action affects major trading partners including China, India, Vietnam, the EU, Mexico, and Canada.
Photo: 2SMILES Photography / Pexels# USTR Proposes Section 301 Duties on 60 Nations for Forced-Labor Gaps
On June 2, 2026, the U.S. Trade Representative announced determinations under Section 301 of the Trade Act of 1974 that 60 economies have failed to impose and effectively enforce prohibitions on goods produced with forced labor. USTR has initiated responsive tariff action, with a public comment period ending July 6, 2026, and hearings scheduled for July 7, 2026.
Scope of Action
USTR initiated the investigations on March 12, 2026, after determining that the failure to address forced-labor goods imports is "unreasonable and burdens or restricts U.S. commerce." 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.
The 60 investigated economies fall into two categories:
54 economies have failed to impose and effectively enforce a forced-labor import prohibition: Algeria, Angola, Argentina, Australia, Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Chile, China (PRC), Colombia, Costa Rica, Dominican Republic, Egypt, El Salvador, Guatemala, Guyana, Honduras, Hong Kong, India, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Malaysia, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, 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.
Six economies have failed to effectively enforce (but may have imposed) such prohibitions: Canada, Ecuador, European Union, Indonesia, Mexico, and Pakistan.
Proposed Tariff Rates
USTR proposes the following additional duties on all products of investigated economies, with limited exceptions per Annex A:
- 10% additional duty on products from economies that have imposed a forced-labor import prohibition, committed to do so through an Agreement on Reciprocal Trade, or imposed a partial regime preventing certain forced-labor goods imports.
- 12.5% additional duty on products from all other economies.
USTR also proposes a textile mechanism permitting a specified volume of apparel and textile imports from certain economies to enter at a reduced Section 301 tariff rate.
Rationale
USTR determined the failure to enforce forced-labor prohibitions is unreasonable because it:
- Undermines the universal aim of eliminating forced labor;
- Permits firms using forced labor to produce goods at lower cost, distorting competition;
- Undermines profitability of compliant firms; and
- Contributes to circumvention of existing U.S. forced-labor import prohibitions.
The action burdens U.S. commerce by subjecting American producers to unfair competition from forced-labor goods in export and domestic markets, and by displacing non-forced-labor goods into the U.S. and other markets.
Public Comment and Hearing Schedule
Interested persons must submit requests to appear at hearings, with a summary of testimony, by June 22, 2026. Written comments are due by July 6, 2026. USTR will hold public hearings on July 7, 2026. The Federal Register notice, comprehensive report, and comment dockets are available on USTR's website.
What this means for shippers
If you source from any of the 60 named economies—especially China, India, Vietnam, Mexico, Canada, the EU, or Southeast Asia—you face imminent additional tariffs of 10–12.5% on most products unless your supplier can demonstrate forced-labor-free production. Review your supply chain immediately and gather documentation of forced-labor-compliance measures before duties take effect post-July 6. Submit comments on the textile carve-outs if apparel or textiles are your category. Export-control and tariff impact analysis is critical now; use /us-china-tariff-lookup to model scenarios and /landed-cost to recalculate duty liability.
