Actions by the United States in the Investigations Under Section 301 of the Trade Act of 1974 of the Acts, Policies, and Practices of 60 Economies Related to the Failure of Each Economy To Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced With Forced Labor
1. Purpose
The USTR initiated investigations into 60 economies regarding their non-compliance with forced labor import prohibitions, proposing tariffs to incentivize enforcement and eliminate such practices.
2. Key Actions And Directives
- Initiate Investigations: Investigate 60 economies under section 301 of the Trade Act for non-compliance with forced labor import prohibitions.
- Propose Tariff Rates: Implement a tariff of 10% ad valorem for economies with imposed but unenforced prohibitions, and 12.5% for those deemed actionable.
- Establish Exemptions: Identify exemptions for critical raw materials and goods to foster compliance and minimize market disruption.
- Implement Tariff-Rate Quotas (TRQs): Encourage the importation of U.S. cotton and textile goods to alleviate reliance on products containing forced labor.
- Evaluate and Modify Tariffs: Utilize authority under section 307 to modify or terminate tariffs or exemptions as needed.
3. Important Points
- Investigation Launch: The USTR opened investigations on March 12, 2026, concerning 60 economies' failure to enforce prohibitions against goods produced with forced labor.
- Determination of Unreasonableness: As of June 2, 2026, the USTR found all 60 economies' practices to be unreasonable, thereby actionable under section 301.
- Public Engagement: USTR received significant public input, with over 1,600 comments and testimonies from over 100 participants during hearings.
- Global Scope of Impact: The investigations encompass a range of significant economies including China, Canada, and the UK among others, reflecting a broad international concern.
- Long-Term Objective: The primary objective is to eliminate practices in investigated countries that violate U.S. trade principles regarding forced labor.
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