USTR Proposes New Section 301 Tariffs for Forced Labor Enforcement
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On March 12, 2026, the Office of the U.S. Trade Representative (“USTR”) initiated 60 investigations under Section 301(b) of the Trade Act of 1974 to assess whether the acts, policies, and practices of certain trading partners relating to forced labor import restrictions are unreasonable or discriminatory, and whether they burden or restrict U.S. commerce.
On June 2, 2026, the USTR announced significant findings and proposed trade actions following these investigations. Specifically, the USTR determined that all 60 investigated economies maintain practices that are actionable under Section 301.
USTR found that 54 countries have failed both to impose and effectively enforce a forced labor import ban. This group includes major trading partners, among others, such as:
- China and Hong Kong
- Japan and South Korea
- Taiwan, Thailand, and Vietnam
- United Kingdom
In addition, six countries were found to have existing prohibitions but inadequate enforcement, including Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan.
Consequently, the USTR proposed imposing additional ad valorem tariffs on imports from all 60 economies, subject to limited exclusions, as follows:
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10% Tariffs – Applicable to economies that have taken partial or formal steps, including:
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12.5% Tariffs – Applicable to all other investigated economies that have not taken meaningful steps, including China, Hong Kong, Japan, South Korea, and other countries not mentioned above. |
The proposed tariffs would apply broadly to all products from the investigated countries, with certain exemptions. A list of products exempted from the new Section 301 tariffs, identified by HTSUS subheadings, is provided in Annex A of the Federal Register. In addition to products listed in Annex A, the proposed new Section 301 tariffs would not apply to:
- Products already subject to Section 232 tariffs
- Informational materials (e.g., books)
- Donations and accompanied baggage
- USMCA-compliant goods from Canada and Mexico
- Certain duty-free textile and apparel articles under CAFTA-DR
The USTR is seeking public input on the proposed measures, including tariff scope, rates, and exclusions. Public hearings will begin on July 7, 2026. While it is widely assumed that the implementation of the new 301 tariffs is a replacement for the IEEPA tariffs struck down by the U.S. Supreme Court earlier this year, it is also expected that new attacks on the legitimacy of the tariffs are likely. Presumably, however, the Administration is counting on earlier cases affirming the Administration’s use of Section 301 to place tariffs on Chinese goods during President Trump’s first term.
As always, Dickinson Wright will continue to monitor developments in these investigations, including any final action taken by USTR, and will provide updates as additional guidance and implementation details become available.
