USTR proposes new forced-labor tariffs

The U.S. Trade Representative (USTR) released Section 301 findings on June 2–3, 2026 proposing additional tariffs on imports from 60 economies that it says have not imposed or effectively enforced bans on goods produced with forced labor. The move follows an investigation into how trading partners address forced-labor risks in their export supply chains.

Under the proposal, most covered imports from the targeted economies would face new additional duties on top of existing tariffs. The measures are framed by USTR as a response to what it described as an “unlevel playing field” created when goods made with forced labor compete in U.S. markets.

USTR proposed a two-tier additional-duty structure. Economies that have adopted a full or partial prohibition on forced-labor imports, or have made commitments to do so, would face a 10% additional duty rate. Other economies would face a higher 12.5% additional duty rate.

Reporting on the findings indicates that the proposed measures would apply broadly across imports from the 60 economies, though precise product coverage and any exemptions are to be refined through the comment and hearing process. The proposal is issued under Section 301, the U.S. trade statute that allows action in response to certain foreign trade practices.

Politico reporting cited six parties that USTR found had failed to effectively enforce prohibitions on forced-labor imports and for which a 10% duty was recommended: Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan. These are among the economies that have adopted or committed to some form of forced-labor import prohibition.

Associated Press and the Washington Post reported that Canada, Mexico, Taiwan and the United Kingdom were among those slated for a 10% additional tariff. The same reporting listed China, Japan, India, South Korea, Brazil and Switzerland among economies expected to face a 12.5% additional duty rate under the proposal.

Beyond the general tariff structure, the proposal includes a textile-specific mechanism. It would allow a specified volume of apparel and textile shipments from certain partners to enter the United States at reduced Section 301 rates, even when broader tariffs apply to those economies.

Details on the exact volume thresholds or eligibility criteria for this textile mechanism were not specified in the reported summaries, but the structure is intended to treat some apparel and textile flows differently from other products from the same partners.

The USTR notice establishes an administrative timetable for stakeholders to respond. Written comments on the proposed tariffs are due by July 6, 2026, giving affected governments, industries and other parties about a month from the findings’ release to submit views.

Public hearings on the Section 301 investigations are scheduled to begin on July 7, 2026. After reviewing comments and testimony, USTR will decide whether and how to finalize, adjust or implement the proposed additional tariffs and the related textile mechanism.