On June 2, 2026, the Office of the United States Trade Representative (USTR) released findings from its Section 301 forced labor investigation. The agency proposed additional tariffs of 10% or 12.5% on imports from 60 economies that have failed to ban or enforce prohibitions on goods produced with forced labor.
Of the 60 economies investigated, 54 have neither imposed nor effectively enforced a forced labor import prohibition. The remaining six (Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan) maintain prohibitions but have failed to enforce them effectively. As a result, all 60 are subject to proposed action under Section 301 of the Trade Act of 1974.
BACKGROUND ON THE INVESTIGATION
USTR launched the 60 investigations on March 12, 2026. Over the following weeks, the agency held consultations with 46 of the targeted governments. It also received more than 450 public comments and held two days of public hearings on April 28 and 29, 2026. Nearly 60 witnesses testified during those proceedings.
USTR Press Release: USTR Initiates 60 Section 301 Investigations (March 12, 2026)
After reviewing the record, USTR concluded that each economy’s failure to address forced labor imports is “unreasonable and burdens or restricts U.S. commerce” under Section 301(b) of the Trade Act.
According to USTR, the failure to impose and enforce these prohibitions does the following:
- Undermines global efforts to eliminate forced labor
- Permits firms using forced labor to produce goods at lower cost
- Reduces the profitability of firms that do not use forced labor
- Contributes to the circumvention of existing forced labor import prohibitions
HOW THE TWO SECTION 301 TARIFF TIERS ARE STRUCTURED
USTR proposed two duty rates, applied based on each economy’s compliance posture.
Economies Subject to the 10% Tariff
The 10% rate covers 13 countries plus the European Union. These jurisdictions either maintain a prohibition, operate a partial regime, or have committed to action through an Agreement on Reciprocal Trade.
Economies with prohibitions in place but inadequate enforcement:
- Canada
- Ecuador
- European Union
- Indonesia
- Mexico
- Pakistan
Economies with commitments under Agreements on Reciprocal Trade:
- Argentina
- Bangladesh
- Cambodia
- Ecuador
- El Salvador
- Guatemala
- Indonesia
- Malaysia
- Taiwan
Economy with a partial regime:
- United Kingdom
Ecuador and Indonesia appear on two lists because each maintains a prohibition and has also made reciprocal trade commitments. In total, the 10% tier covers 14 unique trading entities.
Economies Subject to the 12.5% Tariff
The 12.5% rate applies to the remaining 46 economies. These jurisdictions have neither imposed a forced labor import prohibition nor committed to one through a reciprocal trade agreement. The list includes:
Algeria, Angola, Australia, the Bahamas, Bahrain, Brazil, Chile, China, Colombia, Costa Rica, the Dominican Republic, Egypt, Guyana, Honduras, Hong Kong (China), India, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Thailand, Trinidad and Tobago, Türkiye, the United Arab Emirates, Uruguay, Venezuela, and Vietnam.
MAJOR EXCLUSIONS IN ANNEX A
The proposed action carves out extensive exemptions to limit disruption to industry. Annex A of the Federal Register notice lists thousands of HTSUS subheadings that fall outside the scope of the tariffs. Major exempted categories include:
- USMCA-compliant goods originating in Canada or Mexico
- Textiles and apparel that enter duty-free under CAFTA-DR as goods of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua
- Tropical fruits, vegetables, and spices, such as bananas, coffee, cocoa, vanilla, cinnamon, mangoes, pineapples, and papayas
- Oil, gas, and coal products, including crude petroleum, natural gas, propane, butane, kerosene, and coke
- Many chemicals, minerals, and ores, including copper, nickel, cobalt, aluminum, zinc, tin, manganese, uranium, thorium, and rare-earth metals
- Pharmaceuticals and medicines
- Goods for the aerospace sector
- Articles already subject to Section 232 tariffs
- Metals classified under HTSUS chapters 80 (tin) and 81 (other base metals such as tungsten, molybdenum, and titanium)
- Semiconductor-related items
- Informational materials, donations, and accompanied baggage
Scotch whisky, by contrast, falls within the scope of the proposed tariffs and is not exempted.
THE PROPOSED TEXTILE TARIFF RATE QUOTA MECHANISM
USTR also proposed a textile mechanism modeled on the recent Bangladesh reciprocal trade agreement. Under the proposal, a defined volume of apparel and textile imports from certain trading partners would enter the U.S. at a reduced Section 301 rate.
The quota volume would tie to two factors:
- The amount of U.S. textile inputs (man-made and cotton fiber) exported to that trading partner
- The volume of U.S. cotton and cotton products imported by that trading partner during a defined period
USTR did not specify the in-quota duty rate. Instead, the agency is seeking public comment on:
- Which U.S. and foreign products to include
- The relative market opportunities for each side
- The tariff rate, if any, to apply within the quota
- Whether a similar mechanism should extend to other products or sectors
PUBLIC COMMENT AND HEARING TIMELINE
Several deadlines apply for stakeholders that want to participate in the process:
- June 22, 2026: Submit requests to appear at the public hearing, along with a summary of testimony
- July 6, 2026: Submit written comments
- July 7, 2026: Public hearings begin at 10:00 a.m. in the main hearing room of the U.S. International Trade Commission, 500 E Street SW, Washington, D.C.
- Five days after the hearings conclude: Submit post-hearing rebuttal comments
All filings go through the USTR electronic portal. Written comments use docket USTR-2026-0265, and requests to appear use docket USTR-2026-0266.
ORIGINAL SOURCES
USTR Press Release: USTR Initiates 60 Section 301 Investigations (March 12, 2026)
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