Washington: The United States has initiated significant trade actions against 60 global economies following investigations under Section 301 of the Trade Act of 1974. The investigations, led by the United States Trade Representative (USTR), targeted economies failing to impose or enforce prohibitions on the importation of goods produced using forced labor, which are deemed to unreasonably burden or restrict U.S. commerce.
According to The White House, on June 2, 2026, the Trade Representative determined that the acts, policies, and practices of these economies are unreasonable and thus actionable under Section 301. The proposed measures include imposing ad valorem tariffs on goods from the investigated economies, with certain exemptions. For economies that have existing forced labor prohibitions but lack enforcement, such as Canada and the European Union, a 10 percent tariff has been proposed. Economies that have not imposed such prohibitions face a tariff rate of 12.5 percent.
Public feedback was sought th
rough hearings and written comments, with over 1,600 submissions and 100 testimonies reviewed. The Trade Representative advised that certain products should be exempt from tariffs to prevent potential economic disruptions or due to their unavailability from domestic sources. Exemptions are also considered for goods that would encourage economies to commit to enforcing forced labor prohibitions.
The USTR also proposed establishing tariff-rate quotas (TRQs) to promote U.S. cotton and textiles, reducing reliance on potentially forced labor inputs. Although TRQs are not immediately feasible, they are expected to be established by September 2026.
Since the publication of the Notice of Determinations, additional economies, including Cambodia and Sri Lanka, have taken steps to impose forced labor prohibitions, leading to adjusted tariff rates to encourage enforcement.
In conclusion, the memorandum directs the implementation of tariffs, exemptions, and TRQs to pressure the identified economies into eliminating obj
ectionable practices, with the ultimate goal of upholding U.S. trade standards and protecting commerce from unfair labor practices.