Signal USTR imposes new Section 301 forced-labor tariffs on 60 economies after IEEPA tariffs lapse

Summary

The US Trade Representative announced new tariffs of 10 to 12.5% under Section 301 of the Trade Act of 1974 on imports from 60 economies investigated for failing to prohibit or effectively enforce a ban on goods produced with forced labor. The tariffs, effective for goods entered for consumption from July 24, 2026, were introduced to rapidly replace the prior IEEPA-based emergency tariff regime (formerly under a since-lapsed Section 122 mechanism) after the Supreme Court invalidated that legal basis. The action follows a Section 301 investigation into the 60 economies that USTR opened March 12, 2026. The move is expected to significantly increase pressure on companies to strengthen supply-chain traceability and forced-labor compliance programs. It illustrates the administration's rapid pivot to Section 301 as an alternative legal basis for tariffs after its emergency-powers approach was struck down.