Washington: The United States has announced a series of tariffs on goods from 60 economies following a comprehensive investigation into the failure of these countries to enforce prohibitions on the importation of goods produced with forced labor. This action is in response to findings by the United States Trade Representative (USTR) under Section 301 of the Trade Act of 1974, which identified unreasonable acts, policies, and practices that burden or restrict U.S. commerce.
According to The White House, the investigations concluded that these economies have not effectively enforced prohibitions against importing products made with forced labor. As a result, the USTR proposed a range of tariffs, including a 10 percent ad valorem tariff on goods from countries that have shown some commitment toward prohibitions but lack effective enforcement, such as Canada, Ecuador, and the European Union. Other economies, which were found to have actionable failures, face tariffs of 12.5 percent.
In addition to tariffs, the USTR has recommended establishing tariff-rate quotas (TRQs) on certain textiles and apparel from specific economies, including Bangladesh and Malaysia. These measures are intended to encourage these countries to import U.S. cotton and textiles, thereby decreasing their reliance on inputs potentially produced with forced labor.
Public hearings were held in July 2026, where over 1,600 comments and testimonies were collected, influencing the final decision to impose tariffs and exemptions. These exemptions include products that could lead to domestic supply shortages or economic disruptions if tariffed.
The memorandum also outlines specific actions for economies like the European Union and Taiwan, where tariffs will be adjusted based on Most-Favored Nation (MFN) rates to align with reciprocal trade agreements. For economies that have recently enacted forced labor prohibitions, such as Cambodia and Sri Lanka, a reduced tariff rate of 10 percent will apply to encourage enforcement.
These measures will be implemented by modifying the Harmonized Tariff Schedule of the United States and are subject to further adjustments based on consultation outcomes and ongoing evaluations of economic impacts. The USTR is tasked with publishing these directives in the Federal Register, ensuring transparency and compliance with international trade laws.
