The U.S. Trade Representative (USTR) has proposed new tariffs of up to 12.5% on imports from 60 economies, including India, China, the European Union, Japan, the United Kingdom, Australia, South Korea, and several other major trading partners.
The proposal follows investigations launched on March 12, 2026, under Section 301 of the Trade Act of 1974. USTR concluded that all 60 economies failed to adequately impose or enforce restrictions on imports of goods made using forced labor.
According to USTR, these failures create unfair competition for American workers and businesses by allowing lower cost goods linked to forced labor to enter global markets.
USTR has proposed a 10% additional tariff for economies that already have a forced labor import ban, have committed to introducing one through trade agreements, or operate a partial system that blocks some forced labor goods.
Economies that do not have such prohibitions could face a higher additional tariff of 12.5% on their exports to the United States. The proposal would apply to most products, although certain exemptions are listed in Annex A of the Federal Register notice.
USTR has also proposed a special textile mechanism that would allow a limited volume of apparel and textile imports from certain economies to enter the U.S. at a reduced Section 301 tariff rate.
The investigation found that 54 economies, including India, China, Japan, the UK, Australia, Saudi Arabia, Singapore, South Korea, Switzerland, Thailand, Vietnam, and the UAE, failed to both impose and effectively enforce bans on forced labor imports. Six others Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan were found to have failed to effectively enforce existing prohibitions.
The proposal is not yet final. Requests to appear at USTR hearings must be submitted by June 22, 2026. Written comments are due by July 6, 2026, and public hearings on the proposed tariffs will be held on July 7, 2026 before any final decision is made.
Update: India says it remains engaged with the US on Section 301 proceedings, with negotiations continuing to finalize a framework trade agreement. The government clarified the proposed tariff framework is not final, and applications for public hearings are open until June 22, 2026.
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