Washington: The United States Trade Representative (USTR) has initiated actions under Section 301 of the Trade Act of 1974 against 60 economies for failing to effectively enforce prohibitions on the importation of goods produced with forced labor. The investigations, which began on March 12, 2026, aimed to determine whether these economies' policies burden or restrict U.S. commerce. Following the investigations, the USTR proposed tariffs on goods from these economies as a measure to eliminate such practices.

According to The White House, on June 2, 2026, the Trade Representative determined that the actions and policies of these economies were unreasonable, prompting the proposal of ad valorem tariffs. These proposed tariffs vary, with a 10 percent rate for economies that have shown some commitment or partial enforcement of forced labor prohibitions and a 12.5 percent rate for others. The USTR also suggested establishing a mechanism to allow certain apparel and textile imports to enter the U.S. duty-free.

Public hearings were conducted in early July, gathering over 1,600 comments and testimony from more than 100 witnesses. The feedback influenced the Trade Representative's final advice, leading to exemptions for specific products based on their necessity for the U.S. economy or their potential impact on eliminating forced labor practices.

The memorandum directs that tariffs be imposed with specific exemptions and establishes tariff-rate quotas (TRQs) for certain economies to encourage the importation of U.S. textiles and cotton. The USTR plans to implement these TRQs by September 1, 2026, to reduce reliance on forced labor inputs from other sources.

The memorandum also addresses recent commitments by additional economies, such as Jordan, to impose forced labor import prohibitions, resulting in a 10 percent tariff proposal to further encourage enforcement. The USTR retains the authority to modify or terminate tariffs and exemptions as necessary, ensuring the measures remain effective in achieving their intended outcomes.

The actions outlined in the memorandum aim to prompt compliance and enforcement of forced labor prohibitions among trading partners, with the ultimate goal of eliminating such practices and maintaining fair trade standards. These measures will be published in the Federal Register, as directed by the Trade Representative.