On June 2, the Office of the United States Trade Representative (USTR) announced a major decision: based on Section 301 of the Trade Act of 1974, it will impose additional tariffs on imported goods from 60 economies, on the grounds that these economies have failed to effectively prohibit the import of goods involving forced labor.
How are specific tax rates divided?
- 10%14 economies that have implemented bans on forced labor imports, made commitments through reciprocal trade agreements, or implemented partial bans.
- 12.5%The remaining 46 economies
- 37.5%Brazil (12.5% forced labor + 25% another Section 301 investigation covering digital trade, intellectual property, tariffs, etc.)
Of the 60 economies surveyed, 54 have neither implemented nor effectively enforced bans on the import of forced labor.
Which goods are exempt?
Not all goods will be subject to additional taxes. The following categories are unaffected:
- Goods already subject to Section 232 tariffs (such as steel and aluminum)
- Raw materials that may lead to domestic supply shortages
- Products that cannot be adequately produced in the United States or obtained from other sources
- Information materials, donated supplies, and personal belongings
- Goods originating from Canada and Mexico under the USMCA framework
- Textiles and clothing of Central American countries under the CAFTA-DR framework
In addition, the USTR has proposed a textiles mechanism that would allow clothing and textiles from certain economies to enter the United States at a reduced tax rate.
Timeline and public participation
- July 6Deadline for written comments
- July 7Public hearing
- July 24The current Section 122 provisional tariffs on global 10% have expired.
This timing is crucial. In February of this year, the US Supreme Court overturned the "Liberation Day" tariffs (IEEPA), after which the Trump administration imposed the 10% global tariffs under Section 122. However, in May, the Court of International Trade ruled that these tariffs were illegal and were set to expire on July 24. The USTR's current Section 301 investigation is widely seen as an alternative path to re-establish tariff levels.
Reactions from all parties
- Ministry of Commerce of ChinaWe oppose all forms of unilateral restrictions and call on China and the United States to "meet each other halfway" and maintain the stability of bilateral economic and trade relations.
- EUThe statement called the US's reasons "baseless" and indicated that it would implement the tariff commitments in the joint statement by the end of June.
- Trade expertsThe Trump administration is expected to launch more Section 301 investigations in areas such as pharmaceuticals, digital products, and agriculture.
Impact on foreign trade professionals
If this is ultimately implemented, it means that an additional 10%–12.5% will be added on top of the existing tariffs. This will further increase the cost of exporting to the United States.
suggestion:
- Pay attention to the public opinion collection before July 6th.Relevant companies may submit written opinions.
- Cost calculation in advanceProfit calculation based on the sum of 10% – 12.5%
- Please pay attention to the follow-up investigation.The USTR also plans to impose Section 301 tariffs on structural overcapacity in 16 economies.
- Check the latest shipping and surcharges:CZL shipping cost inquiry
Reference source
- USTR Official Announcement: https://ustr.gov/about/policy-offices/press-office/press-releases/2026/june/ustr-makes-findings-and-proposes-action-60-section-301-investigations-relating-failures-take-action
- Reuters: https://www.reuters.com/world/china/us-proposes-additional-tariffs-imports-60-economies-over-forced-labor-2026-06-03/
- CNBC: https://www.cnbc.com/2026/06/03/us-tariffs-60-economies-dection-301-forced-labor-trade-practices-.html
- WilmerHale Analysis: https://www.wilmerhale.com/en/insights/client-alerts/20260604-ustr-proposes-new-section-301-tariffs-on-60-economies
- Green Worldwide analysis: https://www.greenworldwide.com/ustr-proposes-10-and-12-5-tariffs-on-60-economies-in-section-301-forced-labor-investigation