USTR Announces Proposed Tariff Rates Under Section 301 Forced Labor Investigation, Invites Public Comments
On Tuesday, June 2, the Office of the United States Trade Representative (“USTR”) issued its findings pursuant to its investigation under Section 301 of the Trade Act of 1974, initiated on March 12, related to the failure of 60 economies to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.
While no new tariffs are being imposed immediately, USTR also issued its recommended remedies, covering all 60 economies investigated:
- USTR recommends import tariffs of 10% on 14 economies: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Malaysia, Mexico, Pakistan, Taiwan, and the United Kingdom.
- These 14 economies are those that USTR found to have implemented (but not yet enforced) a prohibition on the importation of goods produced with forced labor (Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan); to have committed to do so via an Agreement on Reciprocal Trade with the United States (in addition to some of the preceding, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, and Taiwan); or to have imposed “a partial regime with the effect of preventing the importation of certain forced labor goods” (United Kingdom).
- USTR recommends import tariffs of 12.5% on 46 economies: Algeria, Angola, Australia, The Bahamas, Bahrain, Brazil, Chile, China, Colombia, Costa Rica, Dominican Republic, Egypt, Guyana, Honduras, Hong Kong, 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, United Arab Emirates, Uruguay, Venezuela, and Vietnam.
- The above-referenced tariff rates are country-wide, with certain exceptions: products referenced in Annex A to the Federal Register notice; informational materials, donations, accompanied baggage; all articles and parts of articles that are subject to Section 232 tariffs; USMCA-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 CAFTA-DR.
- USTR also recommends establishment of “a textile mechanism that would allow for a certain volume of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate.”
USTR is requesting public comments on these recommended remedies by July 6. Comments may be submitted via the designated Public Docket for comments on the USTR Comment Portal. Specifically, USTR requests the following input from the public: (1) The specific products to be subject to increased duties, including whether products should be retained or removed from the scope of the action, or whether products currently listed in Annex A should be added to the scope of the action; (2) Whether products listed in Annex A are appropriately excluded; (3) The level of the increase, if any, in the rate of duty; (4) Whether different tariff rates should be applied to an economy where the economy has made a commitment to the United States to impose and enforce a forced labor import prohibition; has imposed a forced labor import prohibition; or has imposed a partial regime with the effect of preventing the importation of certain forced labor goods; and (5) Features of a textile mechanism, including the U.S. and foreign products to be covered, the relative market opportunities for each side, and the tariff rate (if any) to be applied to products subject to that mechanism, as well as whether a similar mechanism should apply to any other product or sector.
The USTR-led Section 301 Committee will also convene public hearings beginning on July 7. Requests to participate at the hearings, along with a summary of the testimony to be provided, must be submitted to USTR by June 22 via the designated Public Docket for hearing participation on the USTR Comment Portal.
USTR’s announcement does not address other investigations under Section 301 of the Trade Act of 1974, including: the investigation related to structural excess capacity and production in manufacturing sectors of 16 economies initiated on March 11, 2026; the investigation into China’s implementation of commitments under the Phase One Agreement, initiated October 28, 2025; the investigation into Vietnam’s acts, policies, and practices related to intellectual property protection and enforcement announced on May 29, 2026; or the determination and proposed remedies related to Brazil’s unreasonable acts, policies, and practices announced on June 1, 2026. USTR’s findings and recommended remedies the excess capacity, China, and Vietnam investigations are still forthcoming. Remedies subsequent to each investigation are expected to stack on top of the recommended remedies announced here for economies subject to multiple investigations.
The timing of this announcement aligns with the general expectation that USTR plans to have at least some final Section 301 tariffs in force before the current 10% global Section 122 tariffs expire on July 24.
About the Author
Josh Kagan, the former head of the USTR Labor Office, brings firsthand experience overseeing forced labor trade enforcement and negotiations on behalf of the U.S. government. Drawing on that unique perspective, Josh leads Kelley Drye’s globally recognized Forced Labor Trade Enforcement practice, helping clients understand these developments and anticipate what is coming next.
If you need assistance navigating the implications of this announcement, submitting public comments, participating in the public hearing, or identifying forced labor enforcement risks in your supply chain amid the growing proliferation of global forced labor import prohibitions, please reach out to Josh or any member of Kelley Drye’s Forced Labor Trade Enforcement team.