President approves 10% and 12.5% Section 301 tariffs on forced-labor imports
Importers of goods from 60 economies will face the tariffs after notice, with exemptions and a textile quota mechanism.
On July 23, 2026, the President signed a memorandum directing the United States Trade Representative to implement Section 301 tariffs on goods from the 60 economies investigated for failure to prohibit or effectively enforce a prohibition on forced-labor imports.
The Trade Representative proposed ad valorem tariffs of 10 percent on goods of economies that impose a forced-labor import prohibition but do not yet effectively enforce it (Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan), have undertaken commitments in reciprocal trade agreements (Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia, and Taiwan), or have a partial regime that prevents certain forced-labor goods (the United Kingdom). All other economies found actionable are subject to tariffs of 12.5 percent. The proposal also includes a textile mechanism that would allow a certain volume of apparel and textile imports to enter the United States at a zero Section 301 tariff rate.
The Office of the United States Trade Representative invited comments and held public hearings on July 7, 8, and 9, 2026. It received over 1,600 written comments and testimony from over 100 witnesses. Based on those inputs, the Trade Representative identified exemptions for raw materials, products whose tariff would cause economy-wide disruptions, items not producible domestically at reasonable prices, and goods whose exemption would encourage economies to implement or enforce forced-labor prohibitions.
The Trade Representative advised that for goods of the European Union, Japan, Korea, Switzerland, or Taiwan, Section 301 tariffs net of Most-Favored-Nation tariffs would be consistent with existing trade agreements. He also recommended establishing tariff-rate quotas on certain textile and apparel goods, with feasibility projected by September 1, 2026, to encourage importation of U.S. cotton and textile products and reduce reliance on forced-labor inputs.
Following consultation and the publication of the Notice of Determinations, additional economies - Cambodia, Guatemala, Honduras, India, Sri Lanka, Trinidad and Tobago, and Jordan - have imposed prohibitions or commitments. Their goods will be tariffed at the 10-percent rate to further encourage effective enforcement of forced-labor import prohibitions.