U.S. Trade Representative Announces Tariffs on Imports from 60 Economies Over Forced Labor Policies

New tariffs on goods from 60 economies take effect Friday under authority granted by Section 301 of the Trade Act of 1974. The Office of the U.S. Trade Representative stated the measures address what it described as trading partners’ failure to impose and effectively enforce bans on imports of goods produced with forced labor.

U.S. Trade Representative Jamieson Greer said in a statement that the United States has maintained and enforced a forced labor import prohibition for nearly a century. The action, Greer stated, seeks to address what the office characterized as both a human rights concern and a trade practice that creates competitive differences for U.S. producers.

The tariffs follow a February Supreme Court ruling that limited the President’s use of emergency powers for broad import taxes. After that decision, the administration applied temporary measures under Section 122 of the Trade Act, which expired after 150 days. The new tariffs replace that mechanism and are scheduled to remain in place under the Section 301 process.

Countries and Economies Covered

The USTR conducted an investigation announced March 12 that included two rounds of public hearings, public comments, and discussions with trading partners. Results were released in June. The 60 economies identified are: Algeria, Angola, Argentina, Australia, the Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Canada, Chile, China, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, the European Union, Guatemala, Guyana, Honduras, Hong Kong SAR, India, Indonesia, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Malaysia, Mexico, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Pakistan, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Trinidad and Tobago, Türkiye, United Arab Emirates, the United Kingdom, Uruguay, Venezuela, and Vietnam. The European Union comprises 27 member states.

These economies account for 99.4 percent of U.S. imports, according to a USTR factsheet. Exemptions apply to informational materials, donations, and accompanied baggage.

Tariff rates differ by category. A 10 percent rate applies to goods from 17 economies that the USTR determined have made commitments to adopt and enforce forced labor import prohibitions, including Canada, India, Mexico, and the United Kingdom. For certain products from the European Union, Japan, South Korea, Switzerland, and Taiwan, an additional charge brings the combined rate, including the standard most-favored-nation tariff, to either 10 percent or 12.5 percent. The remaining economies face a 12.5 percent rate.

The European Union has scheduled a ban on products made with forced labor beginning December 2027. Several economies adjusted their enforcement measures after the proposed tariffs were announced, resulting in lower rates for some goods.

Statutory Basis and Administration Statements

The tariffs were imposed under Section 301, which authorizes the U.S. Trade Representative, subject to presidential direction, to apply duties or other measures when trading partners are found to engage in unreasonable or discriminatory practices. The same provision was used during the first Trump administration in actions involving China.

An administration official described the policy to reporters as the broadest international labor rights measure undertaken by the United States. The official stated that economies without enforced prohibitions gain a competitive position relative to the United States and that the tariffs are intended to encourage stronger enforcement abroad while reducing the presence of forced-labor goods in supply chains.

Alan Wolff, a senior fellow at the Peterson Institute for International Economics, wrote that the tariffs represent an exercise of presidential authority that could face judicial review. Wolff noted that the Constitution assigns tariff policy authority to Congress and stated that the measures are unlikely to alter global forced labor practices.

Reactions from Affected Economies

Australia’s Trade Minister Don Farrell stated that the tariffs are unjustified and should be removed, citing Australia’s existing policies on forced labor and modern slavery. Brazil’s government accused the USTR of misapplying a human rights issue and indicated it may invoke its Reciprocity Law and pursue a dispute at the World Trade Organization. Canada’s Minister for Canada-U.S. Trade Dominic LeBlanc said the action was anticipated and that Ottawa shares the objective of keeping forced-labor goods out of supply chains while remaining open to further engagement. New Zealand’s Trade and Investment Minister Todd McClay rejected any implication that New Zealand supports forced labor and stated that such practices do not occur in its trade.

The tariff schedule takes effect as the prior 10 percent global rate expires. Some goods remain outside the scope of the new measures under existing statutory exemptions.