Washington: The United States Trade Representative (USTR) has proposed imposing tariffs on goods from 60 economies after investigations revealed these nations fail to impose or effectively enforce prohibitions on the importation of goods produced with forced labor. Initiated on March 12, 2026, under Section 301 of the Trade Act of 1974, the investigations sought to determine whether such failures were unreasonable or discriminatory, thereby burdening or restricting U.S. commerce.
According to The White House, the determinations were made on June 2, 2026, concluding that the policies and practices of these economies are indeed actionable under Section 301. As a result, the USTR proposed tariffs of different rates, primarily 10 percent and 12.5 percent ad valorem, depending on the economy's status concerning forced labor prohibitions. This proposal includes exemptions for certain goods, considering the economic needs and potential disruptions to the U.S. economy.
The USTR received significant feedback, including over 1,600 comments and testimony from over 100 witnesses during public hearings held from July 7 to 9, 2026. The Trade Representative's advice included exemptions for specific products that could lead to domestic supply shortages or cause economy-wide disruptions if tariffed.
Additionally, the USTR proposed establishing tariff-rate quotas (TRQs) for specific textile and apparel goods from certain economies to encourage the importation of U.S. cotton and textile goods. These measures aim to reduce reliance on inputs suspected of being produced with forced labor. The TRQs are expected to be feasible by September 1, 2026.
Moreover, following consultations, several economies, including Cambodia, Guatemala, and Honduras, have imposed forced labor import prohibitions, prompting the USTR to recommend a 10 percent tariff rate for their goods.
The memorandum outlines the tariff structure, including specific exemptions and the establishment of TRQs, as part of the USTR's efforts to address and eliminate forced labor practices linked to the investigated economies. The USTR also retains the authority to modify or terminate tariffs as necessary, ensuring the actions remain consistent with the aims of eliminating forced labor practices.