The U.S. Launches Another Round Of Tariffs Against 60 Economies

On June 2, 2026, the U.S. Trade Representative (“USTR”) announced the initiation of proceedings to impose 10 percent or greater tariffs on 59 countries and the European Union. The new tariffs are based on USTR investigations conducted under Section 301 of the Trade Act of 1974 and findings that all 60 economies have failed to take action on trade in goods produced with forced labor. Of the 60,14 countries and the EU would be subject to 10 percent tariffs, based on their having taken some steps to address forced labor in products exported to the U.S., while the remaining 45 countries would face a new 12.5 percent tariff.

According to the draft Federal Register notice, USTR is proposing 10 percent tariffs on the following 15 economies: Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Malaysia, and Taiwan; and the United Kingdom. Annex A to the notice includes exemptions for (1) articles and parts
currently subject to section 232 tariffs; (2) products compliant with existing trade agreements with Canada and Mexico; (3) raw materials that if subject to the proposed additional tariffs could lead to the unavailability of domestic supply; (4) products that could cause economy-wide disruptions if subject to the proposed additional tariffs; (5) certain products that cannot be grown or produced in sufficient quantities in the United States or obtained from other sources; (6) informational materials (e.g., books), donations, and accompanied baggage; and (7) certain textile and apparel items that enter duty-free from Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua. USTR is also proposing a “textile mechanism” that would allow a reduced tariff on imports depending on a particular country’s purchases of U.S. textiles, cotton, and cotton products.

The next steps in this proceeding are as follows:

• June 22, 2026: deadline to submit requests to appear at the upcoming hearing
   
• July 6, 2026: deadline to submit written comments
   
• July 7, 2026: USTR hearing, continuing as needed

The new tariffs represent another in the continuing series of U.S. jolts to international trade that have in the past year included global tariffs that were overturned by the U.S. Supreme Court (see alert), ongoing tariff investigations under Section 301 based on claims of excess capacity (see alert), and tariffs based on Section 122 of the Trade Act of 1974 (see alert) that have been ruled invalid by the Court of International Trade, as well as a tariff refund process that is still embroiled in litigation (see alert). Companies engaged in international trade are facing continuing upheaval in their business dealings and must exercise great care in managing this turbulence.

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