US Proposes Tariffs on 60 Nations Over Forced Labor

The Office of the U.S. Trade Representative has proposed additional tariffs of up to 12.5% on imports from 60 economies over their failure to ban goods made with forced labor, in a sweeping action under Section 301 of the Trade Act of 1974 that would affect most major trading partners including China, the European Union, Japan, Brazil, India, South Korea, and the United Kingdom. USTR determined that all 60 countries have failed to impose or effectively enforce a prohibition on forced labor-related imports, creating what it called an "unlevel playing field" for American workers. The trade authority proposed a 10% duty rate for economies that have adopted a full or partial prohibition on forced labor trade, including the EU, Mexico, Canada, Indonesia, Pakistan, and Ecuador, while all other economies would face the higher 12.5% rate. U.S. Trade Representative Jamieson Greer stated that the failure of trading partners to address the importation of goods made with forced labor is unacceptable and that the United States will no longer tolerate this disparity. The investigation identified specific sectors at risk, including rice production in Myanmar and tobacco in Malawi, with countries such as Poland and Spain cited as destination markets competing directly with American products. The development comes as senior trade officials from the U.S. and India are engaged in a three-day round of discussions in New Delhi aimed at advancing a proposed bilateral trade agreement, with India among the 54 economies that do not have adequate measures to prohibit imports linked to forced labor. The proposed tariffs will not take effect immediately. The USTR will accept written comments until July 6, 2026, and will hold public hearings on July 7, 2026, before any final determination is made. Section 301 of the Trade Act of 1974 empowers the USTR to examine foreign trade practices and take corrective action, including imposing higher tariffs or trade restrictions, when practices are deemed unfair or discriminatory toward U.S. commercial interests. The trade authority has also proposed a separate textile mechanism that would allow a certain volume of apparel and textile imports from some economies to enter the U.S. at reduced rates, providing potential relief for the textile sector while broader negotiations continue.