Washington: The United States Trade Representative has taken decisive action following investigations under section 301 of the Trade Act of 1974. On June 2, 2026, it was determined that the acts, policies, and practices of 60 global economies were unreasonable and burden or restrict U.S. commerce due to their failure to prohibit or effectively enforce prohibitions on the importation of goods produced with forced labor. According to The White House, the Trade Representative has proposed imposing tariffs as a measure to eliminate these actionable practices. A 10 percent ad valorem tariff is proposed for countries like Argentina, Bangladesh, and Cambodia, among others, which have shown some commitment or partial enforcement regarding forced labor import prohibitions. Meanwhile, a 12.5 percent tariff is suggested for economies with a complete lack of enforcement. Exceptions and exemptions have been outlined for specific goods that are crucial to the U.S. economy or for which tariffs may not effectively address t he issue. The directive includes establishing tariff-rate quotas (TRQs) for specific textile and apparel goods from economies such as Bangladesh and Malaysia, to encourage these countries to import U.S. goods and reduce reliance on inputs likely produced with forced labor. These TRQs are expected to be feasible by September 1, 2026. Public input has played a significant role in shaping these proposals, with over 1,600 comments and testimonies influencing the final recommendations. The Trade Representative is tasked with finalizing details, including possible modifications to avoid economic disruptions and ensure effective enforcement of forced labor import prohibitions.
