The Office of the United States Trade Representative (USTR) announced on June 2 that it is proposing additional tariffs on imports from 60 economies, citing their failure to effectively curb trade in goods produced with forced labor. The rates are divided into two tiers: 10% for 15 economies — including Canada, Mexico, the European Union, and the United Kingdom — that have implemented or committed to enforcing relevant import bans; and a higher rate of 12.5% for the remaining 45 economies, including India, Japan, South Korea, Brazil, and Switzerland. USTR Jamieson Greer stated: «It is unacceptable that our most important trading partners have failed to address the importation of products made with forced labor, and we will no longer tolerate this gap.»
This proposal invokes Section 301 of the Trade Act of 1974, which is considered legally more robust than previous approaches. Broader tariffs imposed earlier by the Trump administration under emergency powers were ruled unconstitutional by the U.S. Supreme Court in February 2026. The current temporary global tariff of 10% under Section 122 — set to expire in July 2026 — also faces legal challenges. USTR aims to complete the Section 301 investigation before that deadline in order to swiftly roll out replacement tariffs. The new tariffs are not immediate: they must go through a public comment process. Written comments are due by July 6, with related hearings expected to begin on July 7, meaning the final rates could still be adjusted. For exemptions, certain foods such as beef, coffee, orange juice, and bananas, as well as metal products already subject to other tariff regimes, are excluded. While major trading partners have generally leaned toward negotiating for lower tariffs rather than strong retaliation, the new tariff plan could upset that balance.