Signal USTR Proposes New Section 301 Forced Labor Tariffs Covering Most Major U.S. Trading Partners

Summary

USTR initiated 60 simultaneous Section 301 investigations on 12 March 2026 covering 59 countries and the EU for failure to enforce forced-labour import bans, potentially reaching 99.4% of US imports, and held consultations with 46 governments plus two days of public hearings with nearly 60 witnesses in late April. In its June 2, 2026 findings, USTR determined that 54 of the 60 economies have neither imposed nor effectively enforced a forced-labour import prohibition, while six — Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan — maintain prohibitions but fail to enforce them effectively. USTR proposed a 10% additional tariff for economies with an import prohibition or a reciprocal-trade commitment to impose one, and 12.5% for all others, plus a textile mechanism allowing reduced-rate entry for certain apparel volumes. USTR received more than 1,600 written comments and held further hearings from July 7-9 with over 100 witnesses before finalizing action. The new Section 301 tariffs took effect at 12:01 a.m. Eastern time on 24 July 2026, with a limited in-transit exemption for goods already shipped before that date and entered for consumption by 28 July 2026.