·
Final
Section 301 Action: On 23 July 2026, the U.S. Trade Representative (USTR),
under President Donald Trump's direction, imposed Section 301 tariffs on 60 economies
for failing to impose and effectively enforce bans on imports of goods produced
with forced labour.
·
Objective:
The action aims to address what the U.S. considers both a human rights concern and
an unfair trade practice
that burdens U.S. commerce.
·
Investigation
Process:
o 60 Section 301 investigations
were initiated on 12 March
2026.
o USTR held two rounds of public hearings
and consulted with more
than 45 governments.
o Received over 2,100 public comments
during the investigations and more
than 1,600 comments on the proposed tariff action.
o More than 100 witnesses testified
during hearings held from 7–9
July 2026.
·
Section
301 Determination: On 2 June 2026, USTR
concluded that the investigated economies' failure to prohibit and effectively
enforce bans on forced labour imports was unreasonable and burdened U.S. commerce,
making the practices actionable under Section
301(b) of the Trade Act of 1974.
·
Tariff
Rates:
o 10% Section 301 tariff
applies to economies that:
§ Already have a forced labour import prohibition;
§ Have committed to adopt and
enforce such a prohibition under an Agreement
on Reciprocal Trade; or
§ Have implemented a partial
regime preventing imports of certain forced labour
goods.
o Countries subject to the 10% tariff include:
§ Argentina, Bangladesh,
Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia,
Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the
United Kingdom.
o European Union, Taiwan, Japan,
South Korea and Switzerland will
face 10% or 12.5% tariffs
(net of the MFN rate) on specified products.
o All other investigated
economies will face a 12.5% Section 301 tariff.
·
Product
Exemptions: USTR granted exemptions for:
o Raw materials critical to
domestic supply.
o Products whose tariffs could
cause economy-wide disruptions.
o Products unavailable in
sufficient quantity or at reasonable prices from U.S. or alternative sources.
o Certain products from
economies making progress on forced labour import
prohibitions.
o Products where tariffs would
not significantly contribute to eliminating the identified practices.
·
U.S.
Position: Ambassador Jamieson Greer stated
that decades of voluntary efforts have failed to eliminate forced labour from global supply chains and emphasized that
trading partners should adopt and effectively enforce import bans similar to
those already in place in the United States.
·
Significance
for India: India is among the economies subject to
the 10% Section 301 tariff, reflecting the U.S. assessment that
it has taken steps toward restricting imports of goods produced with forced labour but remains subject to the new enforcement
framework.
[ABS News Service/24.07.2026]
On 23 July, 2026, Ambassador Jamieson Greer is taking final action, at President
Trump’s direction, under Section 301 of the Trade Act of 1974 by imposing tariffs
on 60 economies for their failure to impose and effectively enforce a prohibition
on the importation of goods produced with forced labor. Today’s action comes after the Office of the United
States Trade Representative’s (USTR) investigations, which included two rounds of
public hearings, more than 2,100 public comments, and engagement with our trading
partners to remedy these longstanding concerns.
“President Trump recognizes that decades of moral suasion have not eradicated
forced labor from global supply chains. The United States has had a forced labor import ban for nearly a century, and rigorously enforces
it; it’s well past time for our trading partners to do the same,” said Ambassador
Greer. “Today’s action will begin to
correct what is both a human rights abuse and distortive trade practice to improve
the welfare of workers everywhere. I am encouraged
by the trading partners who have moved quickly to adopt forced labor import prohibitions, and look forward to ensuring their
effective enforcement.”
Background
Section 301 of the Trade Act of 1974, as amended (Trade Act), is designed
to address unfair foreign practices affecting U.S. commerce. Section 301 may be used to respond to unjustifiable,
unreasonable, or discriminatory foreign government acts, policies, or practices
that burden or restrict U.S. commerce. A
Section 301(b) investigation examines whether the acts, policies, or practices are
unreasonable or discriminatory and burden or restrict U.S. commerce.
At the specific direction of the President, on March 12, 2026, the U.S. Trade
Representative initiated 60 investigations related to the failure of various economies
to impose and effectively enforce a prohibition on the importation of goods produced
with forced labor.
On April 28 and April 29, 2026, USTR and the Section 301 Committee convened
public hearings regarding these investigations.
Pursuant to Section 303(a) of the Trade Act, USTR also held consultations
with more than 45 of the governments of the economies subject to the investigations.
On June 2, 2026, the U.S. Trade Representative determined under Section 301
of the Trade Act that the acts, policies, and practices of the 60 investigated economies
related to the failure to impose and effectively enforce a prohibition on the importation
of goods produced with forced labor is unreasonable and
burdens or restricts U.S. commerce, and are thus actionable under Section 301(b)
of the Trade Act. As a result of this determination,
the U.S. Trade Representative proposed responsive action and invited the public
to provide written comments on the proposed action by July 6, 2026. USTR received, reviewed, and analyzed over 1,600 written comments on the proposed responsive
action. From July 7 to July 9, USTR also
held public hearings regarding proposed responsive action in the investigations,
at which over 100 witnesses provided testimony and responded to questions.
Consistent with the specific direction of the President, the U.S. Trade Representative
has made the following determinations:
·
10 percent is the appropriate rate of Section 301 duties for investigated
economies that (i) impose a forced labor import prohibition; (ii) have committed to impose and
enforce such a prohibition through an Agreement on Reciprocal Trade; or (iii) have
imposed a partial regime with the effect of preventing the importation of certain
forced labor goods.
These economies are: Argentina, Bangladesh, Cambodia,
Canada, Ecuador, El Salvador, Guatemala, Honduras,
India, Indonesia, Jordan, Malaysia, Mexico, Pakistan,
Sri Lanka, Trinidad and Tobago, and the United Kingdom;
·
10 percent or 12.5 percent, net of Most-Favored-Nation
(MFN) rate is the appropriate rate of Section 301 duties for certain products of
the European Union, Taiwan, Japan, Korea, and Switzerland
that are not otherwise exempted, as explained in greater detail in the Federal
Register Notice; and
·
12.5 percent is the appropriate rate of Section 301 duty for all other
investigated economies.
The U.S. Trade Representative has also determined, in accordance with the
specific direction of the President, that product exemptions are appropriate for:
(a) raw materials that if subject to these tariffs could lead to the unavailability
of domestic supply; (b) products that could cause economy-wide disruptions if subject
to these tariffs; (c) products that cannot be grown or produced in sufficient quantities
or at reasonable prices in the United States or obtained from other sources; (d)
certain products of Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European
Union, Guatemala, Indonesia, Jordan, Malaysia, Switzerland, Taiwan, or the United
Kingdom that would encourage these economies to fulfill
commitments regarding forced labor import prohibitions
or to enact and effectively enforce a forced labor import
prohibition; or (e) articles for which these tariffs may not contribute substantially
to the elimination of the acts, policies, and practices of found to be actionable
in the investigations.