USTR Proposes New Tariffs Tied to Forced Labor Import Bans

Details of the Proposed Section 301 Tariffs

USTR’s determination under Section 301 found that all 60 targeted economies have failed to impose or effectively enforce prohibitions on imports linked to forced labor. In response, the office has proposed a differentiated tariff structure: a 10% duty rate for economies that have adopted a full or partial prohibition on forced labor trade, and 12.5% for all other economies.

The measure would apply broadly to imports from most major U.S. trading partners, including China, the European Union, and Japan. U.S. Trade Representative Jamieson Greer stated that the failure of key partners to address forced labor in supply chains is “unacceptable” and said the United States “will no longer tolerate this disparity.”

Alongside the tariff proposal, USTR outlined a separate textile mechanism that would allow specified volumes of apparel and textile imports from some economies to enter the U.S. at reduced rates. The notice sets a deadline of July 6 for written comments and schedules public hearings for July 7.

Broader Trade Policy Context and Reactions

The initiative follows the U.S. Supreme Court’s decision earlier this year to strike down most of President Donald Trump’s “Liberation Day” tariffs. In the wake of that ruling, Trump imposed 10% global baseline duties under Section 122, which are due to expire in July. Section 301 provides authority for the president to impose levies to counter foreign trade practices deemed harmful to U.S. commerce.

An EU spokesperson described the rationale for the new tariffs as “unjustified,” noting that the bloc remains “on track to ensure implementation of our Joint Statement tariff commitments by the end of June,” according to comments reported by Reuters.

Nick Marro, principal at Economist Intelligence Unit, said the Supreme Court decision has slowed but not “de-fanged” the administration’s tariff agenda, and he expects further investigations and tariff announcements ahead of renewed trade talks. He added that the impact of the proposed tariffs may be moderated by significant exemptions for products including electronics and artificial intelligence-related goods.

Deborah Elms, head of trade policy at the Hinrich Foundation, said any adjustment to Section 301 tariff rates would reshape global supply chains by creating new economic incentives for firms.

Separately, the U.S. government has begun seeking public comments on the scope of a new U.S.-China Board of Trade, agreed during a bilateral summit last month, which is expected to lead to reduced tariff rates on each side’s goods. Marro said China may refrain from immediate retaliation, at least on explicit trade restrictions, but viewed Beijing’s restraint as limited if further U.S. import tariffs are introduced.

FAQ

What tariff rates has USTR proposed under Section 301?
USTR has proposed a 10% duty rate for economies that have adopted a full or partial prohibition on forced labor trade, and 12.5% for all other economies among the 60 affected.

Which trading partners are most directly affected?
The proposed tariffs would affect imports from 60 economies, including major partners such as China, the European Union, and Japan.

What are the key procedural dates for this proposal?
Written comments on the tariff proposal are due by July 6, and public hearings are scheduled for July 7.

How does this proposal relate to previous U.S. tariffs?
The proposal follows the Supreme Court’s decision to strike down most “Liberation Day” tariffs and comes as 10% global baseline duties imposed under Section 122, which are separate from Section 301 measures, are set to expire in July.