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On March 12, 2026, the United States Trade Representative (USTR) published its Initiation of Section 301 Investigations into the practices of various economies, including that of US allies and long-standing trade partners, for their alleged failure to prohibit the importation of goods produced with forced labor.
What Can the USTR Do?
Section 301, formally known as Title III of the Trade Act of 1974 or “Relief from Unfair Trade Practices,” authorizes the USTR to investigate acts, policies, or practices that it considers unreasonable, discriminatory, or burdensome to US commerce. The USTR goes on to say that practices which permit forced or compulsory labor meet the criteria of unreasonable, unfair, and inequitable. If the USTR concludes that an act is “unjustifiable” and “burdens or restricts” US commerce, action is mandatory. On the other hand, if the USTR determines that such act is only “unreasonable or discriminatory” and “burdens or restricts” US commerce, action is discretionary. In either case, when the USTR aims to remedy a foreign trade practice, the agency can (1) impose tariffs or other import restrictions, (2) withdraw or suspend trade agreement concessions, or (3) enter into a binding agreement with the foreign government to either cease the conduct in question or compensate the US. Additionally, the statute requires that when USTR’s action is mandatory, the agency’s action should “affect goods or services of the foreign country in an amount that is equivalent in value to the burden or restriction being imposed by that country on U.S. commerce.”
The Government’s Rationale to Investigate
According to the USTR, this investigation is necessary because “ending forced labor is a key priority and an economic and national security imperative for the United States.” The background provided by the agency also cited numerous statistics that reveal millions of people globally are in forced labor schemes. USTR then outlined how firms using forced labor harm US commerce and competitiveness: 1) selling goods at artificially low prices, and 2) pushing firms not using such labor practices out of the marketplace. The agency also noted that US exports are required to compete with products made with forced labor and are consequently less successful in markets that lackforced labor import prohibitions.
Sectors, Goods, and Countries in Scope
The USTR identified the agricultural and industrial sectors as arenas where forced labor is most profitable. However, the agency also called out specific items from the Department of Labor’s 2024 List of Goods Produced by Child Labor or Forced Labor (“TVPRA List”), typically composed of inputs produced with forced labor: garments, textiles, critical minerals, fish, and palm fruit. In addition to the countries identified on the TVPRA List, the USTR listed 60 countries under investigation, most notable of which include Australia, Canada, the European Union (EU), Israel, Japan, Norway, Singapore, South Korea, Switzerland, and the United Kingdom.
While the USTR recognized Canada, Mexico, and the EU’s efforts to adopt measures “intended to stop the importation or sale of products produced using forced labor,” the agency claims “none of these countries [have] adopted and effectively enforced a forced labor import prohibition to date.” In other words, the statutory ban on forced labor domestically, as seen within US-allied countries, is insufficient to prevent global businesses from profiting off forced labor in third countries.
Looking Ahead & What This Means for Global Businesses
Over the past eight years, Section 301 has been a tool wielded by the USTR to retaliate against globally recognized trade competitors, such as China, for discriminatory practices like intellectual property rights violations. However, the current investigation illustrates a pivot by the Trump administration to use all tools at its disposal to replace the global reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA). While the language used to classify forced labor as a threat to US commerce would fall within the “discretionary action” category, the administration’s comments prior to publishing the investigation indicate that it will act to impose some form of import restriction (i.e., tariffs) at the conclusion of this investigation. These tariffs will likely “replace” the Section 122 tariffs upon their 150-day expiration.
While the statute does not impose a fixed timeline for USTR to conclude a Section 301 investigation after written comments, public hearing, and post-hearing rebuttal, these investigations usually take between 6-12 months to complete. Given the impending expiration of Section 122 tariffs, we expect this investigation’s timeline could be much shorter.
The deadline to submit written comments is April 15, 2026.
The Section 301 Committee will convene public hearings in the main hearing room of the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, on April 28, 2026, beginning at 10:00 a.m., continuing, as necessary, until May 1.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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