USTR Forced Labor Investigations Result In New Section 301 Tariffs

As the President’s previous near-blanket 10% tariff schedule expired on July 24, 2026, the Office of the United States Trade Representative (USTR) issued a Notice of Action (Notice) with a new tariff schedule aimed at countries that have not addressed the issue of forced labor in their markets. Ambassador Jamieson Greer stated, “{t}he United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same.” 

With limited exceptions, these actions result in tariffs ranging from 10%-12.5%, which took effect on 12:01 a.m. EST on July 24, 2026.  Based on their findings, the Notice identifies two tariff schedules to be applied to imports from countries based on whether they are or are beginning to implement a ban on forced labor, and for countries with no such ban.  The Notice also identifies four specific countries that will be subject to a tariff rate quota (TRQ) based on their imports of U.S. cotton and textiles.

USTR has identified two groups to which these tariffs will be applied. The first is composed of countries that (1) impose a forced labor import prohibition, (2) have committed to impose and enforce a forced labor prohibition through an Agreement on Reciprocal Trade (ART), or (3) have imposed a partial prohibition on forced labor by preventing the importation of certain goods.  For these countries, a ten percent Section 301 duty will apply, with certain countries subject to a 10% rate net of a product’s most-favored-nation (MFN) duty.  

The second group accounts for every other country without a forced labor import prohibition. For these countries, a 12.5% Section 301 duty will apply, with certain countries subject to a 12.5% rate net of a product’s MFN duty. Finally, Bangladesh, Cambodia, Indonesia, and Malaysia specifically will be subject to TRQs, based on each economy’s importation of U.S. inputs. For these four countries, the USTR hopes to encourage the importation of U.S. cotton and textile goods in order to reduce reliance on inputs from other sources that are more likely to contain forced labor inputs.

USTR has also included exceptions to these tariffs for countries that meet at least one of following conditions: (1) raw materials that, if subject to the proposed additional tariffs, could lead to the unavailability of domestic supply; (2) products that could cause economy-wide disruptions if subject to additional tariffs; (3) certain products that cannot be grown or produced in sufficient quantities in the United States or obtained from other sources; and (4) articles for which additional tariffs may not contribute substantially to the elimination of the acts, policies, and practices determined to be actionable in the investigations.

USTR determined the following 54 countries have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor, and are therefore subject to the 12.5% duty rate:

USTR determined the following six countries, and/or aggregate countries, have failed to effectively enforce a prohibition on the importation of goods produced with forced labor, and are therefore subject to the 10% duty rate: 

• Canada
• Ecuador
• the European Union
• Indonesia
• Mexico
• Pakistan

As the U.S.’s tariff framework becomes subject to change, Buchanan’s team of vigilant international trade and national security attorneys and government relations professionals is ready to help U.S. manufacturers tackle this dynamic issue by assisting with manufacturers’ understanding and approach to U.S. trade remedy laws and trade policies. We are dedicated to monitoring the status and durability of Section 301 tariffs, as U.S. AD/CVD tariff laws are one of the only available tools to reestablish an even playing field for American companies and avoid lost sales and profits. Our eBook, Trade Remedy Investigations Handbook, shares details on how diverse domestic industries can take advantage of these laws – antidumping and countervailing duty investigations – to combat unfair foreign competition and receive adequate remedies and protections. Our dedicated team has decades of experience supporting clients across a range of industries – ranging from steel, chemical, rubber, mining, and agricultural products – to ensure that the U.S. market is operating under fair and equal conditions. 

Buchanan International Trade analyst Theodora Mattei contributed to this advisory.

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