US proposes section 301 tariffs over forced labour allegations

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US proposes section 301 tariffs over forced labour allegations

B Mirror Report: The United States has proposed additional tariffs on imports from 60 economies, including Bangladesh, after concluding that their efforts to prevent the importation of goods produced with forced labour are insufficient and are restricting U.S. commerce.

The Office of the United States Trade Representative (USTR) made the determination on Tuesday under Section 301 of the Trade Act of 1974, stating that the policies and practices of the affected economies are “unreasonable” and place U.S. businesses and workers at a competitive disadvantage.

According to USTR, the failure to effectively enforce bans on forced labour–produced goods distorts global trade by allowing cheaper products made under exploitative conditions to enter international markets, thereby undermining fair competition.

U.S. Trade Representative Ambassador Jamieson Greer said the lack of adequate enforcement by key trading partners is unacceptable and contributes to an “unlevel playing field” for American workers. He added that while some economies have taken initial steps to address the issue, stronger action is still required globally.

Under the proposal, the U.S. plans to impose additional duties on goods from the affected economies, with rates varying based on each country’s enforcement measures.

Economies that have implemented or committed to forced labour import prohibitions may face an additional 10 percent tariff, while others could face duties of up to 12.5 percent. A separate mechanism for textiles and apparel would allow limited import volumes at reduced tariff rates.

The proposal is open for public comment, with hearings scheduled for July 7, 2026. Interested parties may submit testimony by June 22, while written comments are due by July 6, according to USTR.

The decision follows a major Section 301 investigation launched on March 12, 2026, covering 60 economies over allegations of inadequate enforcement against forced labour-linked imports. The process included public hearings and nearly 500 written submissions from stakeholders.

USTR concluded that all 60 economies failed either to impose or effectively enforce prohibitions on forced labour produced goods, describing the situation as both “unreasonable” and harmful to U.S. trade interests.

The investigation found that weak enforcement allows firms using forced labour to reduce production costs, distort global pricing, and undermine companies that comply with labour standards.

The list of affected economies includes Bangladesh, India, China, Vietnam, Brazil, the United Kingdom, the European Union, Canada, Mexico, Japan, South Korea, and several others across Asia, Europe, Africa, and the Americas.

USTR said the policy aims to ensure that global trade does not incentivize or perpetuate forced labour and that U.S. industries are protected from unfair competition.

 

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