U.S. proposes tariffs on 60 trade partners over forced labor imports

Apparel, textiles and a broad list of consumer and industrial goods would be among the first imports to feel the pressure if Washington turns a new forced-labor tariff proposal into law. The U.S. Trade Representative said June 2 that 60 economies were subject to Section 301 findings because their failure to prohibit or enforce bans on imports made with forced labor was “unreasonable” and burdened U.S. commerce.

The proposal would add duties to all products from the investigated economies, with a 10% rate for countries that already have a forced-labor import prohibition, have committed to one through a reciprocal-trade agreement, or maintain a partial regime that blocks some such imports. Every other economy in the sweep would face a 12.5% tariff. USTR also proposed a textile mechanism that would let a set volume of apparel and textile imports from some economies enter at reduced Section 301 rates, a sign that clothing and fabric supply chains could be an early pressure point for retailers, wholesalers and manufacturers.

The list reaches far beyond China and would touch major trading partners including Canada, Mexico, the European Union, Japan, South Korea, Taiwan, the United Kingdom, India and Bangladesh. Reuters reported that six economies, Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan, were found to have failed to effectively enforce forced-labor prohibitions, while the United Kingdom was treated differently because it had imposed a partial regime. Reuters and POLITICO reported that the other 44 investigated economies would face the higher 12.5% rate, including Japan and South Korea.

The move is also a test of how far Donald Trump’s second-term trade agenda can stretch after the Supreme Court ruled in February 2026 that IEEPA does not authorize presidential tariffs, wiping out the April 2025 “Liberation Day” duties. The administration then leaned on Section 122 for a temporary 10% global tariff, but the Court of International Trade struck that down on May 7, a decision now under appeal. That authority is set to expire July 24 unless Congress extends it, leaving the White House reliant on Section 301 and Section 232 to rebuild what the Atlantic Council described as a tariff wall.

Jamieson Greer said the failure of major trading partners to address forced-labor imports was unacceptable and created an “unlevel playing field” for American workers. The reaction abroad was swift: China opposed unilateral restrictions, the European Union called the rationale unjustified, and Brazil said it had “deep disagreements” with the proposal. Interested parties must request a hearing slot and file a testimony summary by June 22, while written comments are due July 6 and public hearings are set for July 7, setting up a compressed fight over a tariff system that would be broader, more legally complex and potentially more contentious than the earlier China-centered rounds.