On June 2, 2026, the United States Trade Representative (USTR) determined under Section 301 of the Trade Act of 1974 that 60 countries had failed to impose and effectively enforce prohibitions on the importation of goods produced with forced labor, and that the failure is unreasonable and burdens U.S. commerce. The report proposes ad valorem duties on all products of the investigated countries, with limited exceptions. The 60 countries investigated account for over 99% of U.S. imports.

USTR’s Determinations: On March 12, 2026, the USTR initiated 60 investigations related to the failure of certain countries to impose and/or effectively enforce a prohibition on the importation of goods produced with forced labor. Following a public comment process in which USTR received testimony of nearly 60 witnesses and 500 comments and rebuttal comments, USTR made two categories of findings:

  • 54 countries have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor, including Algeria, Angola, Argentina, Australia, the Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Chile, China, 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, 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, and Vietnam.
  • Six countries have failed to effectively enforce a prohibition on the importation of goods produced with forced labor: Canada; Ecuador, the European Union; Indonesia; Mexico; and Pakistan.

Proposed Duty Rates: USTR proposes a two-tier tariff structure, based on whether the country of origin has implemented, and enforces, a prohibition against forced labor.

  • 10% additional duties — For countries that impose a forced labor import prohibition, have taken on commitments related to forced labor import prohibitions through an Agreement on Reciprocal Trade, or have imposed a partial regime with the effect of preventing the importation of certain forced labor goods, the report recommends the imposition of 10% additional duties. These countries include: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Malaysia, Mexico, Pakistan, Taiwan, and the United Kingdom.
  • 12.5% additional duties — For all other countries subject to the investigation and which USTR concluded to have failed to impose and effectively enforce a forced labor import, the report proposes 12.5% additional duties.

Product Exclusions: The USTR proposes exceptions to the duties as listed or described in Annex A to the notice. The proposed exemptions in Annex A include all articles and parts currently subject to section 232 tariffs and raw materials that if subject to the proposed additional tariffs could lead to the unavailability of domestic supply, products that could cause economy-wide disruptions if subject to the proposed additional tariffs, and certain products that cannot be grown or produced in sufficient quantities domestically. In addition to the products listed in Annex A, the proposed action does not cover informational materials, donations, accompanied baggage; all articles and parts of articles that are subject to section 232 tariffs; US Mexico Canada Agreement-compliant goods of Canada or Mexico; and textiles and apparel articles that enter duty-free as a good of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua under the Dominican Republic-Central America Free Trade Agreement.

The USTR also proposes a textile mechanism that would allow for a certain volume of apparel and textile imports to enter the United States at a reduced Section 301 tariff rate. Under this mechanism, the volume of reduced-duty imports from certain trading partners would be equivalent to the quantity of exports of textiles (e.g., U.S. produced man-made and cotton fiber textile inputs) from the United States to that trading partner. A certain volume of apparel and textile imports would also be allowed to enter the United States at the reduced Section 301 rate based on the volume of U.S. cotton and cotton products a trading partner imports from the United States during a certain period of time.

Public Comment and Hearing Deadlines: Companies affected by these proposed tariffs and that wish to provide comments on the USTR’s findings and proposed tariffs should note the following key dates.

  • June 22, 2026 — To be assured of consideration, submit requests to appear at the hearings, along with a summary of the testimony, by this date.
  • July 6, 2026 — Submit written comments by this date.
  • July 7, 2026 — The Section 301 Committee will convene public hearings in the main hearing room of the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, beginning at 10:00 a.m., and continuing, as appropriate.

USTR is seeking comments on a range of issues including the specific products to be subject to increased duties, whether products listed in Annex A are appropriately excluded, the level of the increase (if any) to the rate of duty, and whether different tariff rates should be applied to a country where the country has made a commitment to the United States to impose and enforce a forced labor import prohibition.

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