·
On 12 March 2026, the U.S.
Trade Representative (USTR) launched Section
301 investigations into 60
economies, including India,
to examine whether they prohibit and effectively enforce bans on imports made
with forced labour.
·
On 2 June 2026, USTR
determined that the acts, policies and practices of all 60 economies were unreasonable, burdened
or restricted U.S. commerce, and were therefore actionable under Section 301.
·
10%
tariff for
economies that:
o Have adopted or committed to adopt forced
labour import prohibitions.
o Include India, Bangladesh, Canada, Indonesia,
Malaysia, Mexico, Pakistan, Sri Lanka, the UK and others.
·
12.5% tariff for all other investigated economies.
·
EU,
Japan, South Korea, Switzerland and Taiwan receive a special "net of MFN
tariff" treatment.
·
India
was initially proposed for a higher tariff but was moved to the 10% category after
adopting a forced labour
import prohibition following consultations with the United
States.
The
tariff exemptions cover products such as:
·
Raw
materials with inadequate U.S. supply.
·
Products
whose tariffs could disrupt the U.S. economy.
·
Goods
not available in sufficient quantity or at reasonable prices in the U.S.
·
Products
where tariffs would not effectively address forced labour concerns.
·
Certain
products from economies that have undertaken commitments to strengthen forced
labour enforcement.
·
USTR
will establish three-year
TRQs for:
o Bangladesh
o Cambodia
o Indonesia
o Malaysia
·
The
TRQs are intended to encourage these countries to import more U.S. cotton and textile inputs.
·
Eligible
quantities of specified textile and apparel products will enter the U.S. without Section 301 tariffs.
·
Until
the TRQs become operational (expected after 1 September 2026), the standard 10% tariff will apply.
·
USTR
received:
o More than 1,600 written submissions.
o Testimony from over 100 witnesses
during hearings held on 7–9
July 2026.
·
Feedback
led to revisions in tariff rates, exemptions and the introduction of TRQs.
·
The
U.S. Trade Representative retains authority, subject to Presidential direction,
to:
o Modify tariff rates.
o Expand or withdraw exemptions.
o Amend or terminate TRQs.
o Terminate tariffs if circumstances change.
·
The
tariffs are intended to:
o Encourage countries to enact and
effectively enforce forced
labour import prohibitions.
o Reduce the use of forced labour in global
supply chains.
o Protect U.S. commerce through Section 301
enforcement.
·
India
faces a 10% Section 301
tariff on exports to the U.S. under this action.
·
The
lower tariff reflects U.S. recognition of India's adoption of a forced labour import prohibition,
but India remains subject to Section 301 measures until the U.S. determines
that the concerns have been adequately addressed.
MEMORANDUM
FOR THE UNITED STATES TRADE REPRESENTATIVE
Subject: Actions by the United States in the Investigations
under Section 301 of the Trade Act of 1974 of the Acts, Policies, and Practices
of 60 Economies Related to the Failure of Each Economy to Impose and Effectively
Enforce a Prohibition on the Importation of Goods Produced with Forced Labor
On March 12, 2026, the United States Trade Representative
(Trade Representative) initiated investigations under section 301 of the Trade Act
of 1974, as amended (19 U.S.C. 2411) (section 301), into the acts, policies, and
practices of 60 economies to examine whether any of the economies subject to these
investigations fail to prohibit or to effectively enforce a prohibition on the importation
of goods produced wholly or in part with forced labor and whether the failure is
unreasonable or discriminatory and burdens or restricts U.S. commerce. 91 Fed.
Reg. 12884 (Initiation of Section 301 Investigations). The economies subject
to these investigations are:
1. Algeria
2. Angola
3. Argentina
4. Australia
5. The Bahamas
6. Bahrain
7. Bangladesh
8. Brazil
9. Cambodia
10. Canada
11. Chile
12. China, People’s Republic of
13. Colombia
14. Costa Rica
15. Dominican Republic
16. Ecuador
17. Egypt
18. El Salvador
19. European Union
20. Guatemala
21. Guyana
22. Honduras
23. Hong Kong, China
24. India
25. Indonesia
26. Iraq
27. Israel
28. Japan
29. Jordan
30. Kazakhstan
31. Kuwait
32. Libya
33. Malaysia
34. Mexico
35. Morocco
36. New Zealand
37. Nicaragua
38. Nigeria
39. Norway
40. Oman
41. Pakistan
42. Peru
43. Philippines
44. Qatar
45. Russia
46. Saudi Arabia
47. Singapore
48. South Africa
49. South Korea
50. Sri Lanka
51. Switzerland
52. Taiwan
53. Thailand
54. Trinidad and Tobago
55. Türkiye
56. United Arab Emirates
57. United Kingdom
58. Uruguay
59. Venezuela
60. Vietnam
On June 2, 2026, the Trade Representative determined
that the acts, policies, and practices of each of these economies are unreasonable
and burden or restrict U.S. commerce and thus are actionable under section 301(b)(1)
(19 U.S.C. 2411(b)(1)) (Notice of Determinations: 2026-11296; 91 Fed. Reg.
34272) (Notice of Determinations).
As a result of these determinations, the Trade Representative
proposed to determine in each investigation that action is appropriate under section
301 to obtain the elimination of the actionable acts, policies, and practices, including
imposing ad valorem tariffs on all goods of each investigated economy, with
exemptions for certain goods. To obtain the elimination of the actionable acts,
policies, and practices in each investigation, the Trade Representative proposed
section 301 tariffs. The Trade Representative proposed tariffs of 10 percent ad
valorem 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 their respective Agreements
on Reciprocal Trade regarding forced labor import prohibitions (Argentina, Bangladesh,
Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia, and Taiwan); or
have imposed a partial regime with the effect of preventing the importation of certain
forced labor goods (the United Kingdom). For all other economies whose failure to
impose forced labor import prohibitions the Trade Representative has found actionable
under section 301, the Trade Representative proposed section 301 tariffs of 12.5
percent ad valorem. In addition, the Trade Representative proposed to establish
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
(USTR) invited comments by interested persons on these proposed actions and convened
public hearings on July 7, 8, and 9, 2026. USTR received over 1,600 written comments
and testimony from over 100 witnesses at the hearings.
The Trade Representative has informed me of the substance
of significant comments on the proposed actions in each investigation and provided
me his advice on appropriate actions, including tariffs of various rates, exemptions
for certain products, and tariff-rate quotas (TRQs) for specific types of products
for certain economies. For example, the Trade Representative advised me that after
considering the comments and testimony received, certain products warrant exemption
from tariffs imposed in connection with an investigation, including because of the
needs of the U.S. economy or based on the extent to which imposing tariffs on the
products will contribute to the elimination of the acts, policies, and practices
of the economies found to be actionable in the investigations described above. These
exemptions encompass (a) raw materials that if subject to the proposed additional
tariffs could lead to the unavailability of domestic supply; (b) products that could
cause economy-wide disruptions if subject to the proposed additional 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) products that if
exempted from these tariffs would encourage economies that have made commitments
to the United States regarding forced labor import prohibitions to implement those
commitments 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 the economies found to be actionable
in the investigations described above.
The Trade Representative has also advised me that for
goods of the European Union, Japan, Korea, Switzerland, or Taiwan, section 301 tariffs
that are the net of Most-Favored Nation (MFN) tariffs would be consistent with their
respective Agreements on Reciprocal Trade or similar arrangements and would be appropriate
to encourage these economies to fulfill commitments regarding forced labor import
prohibitions or to enact or effectively enforce such a prohibition.
Further, the Trade Representative has advised me that,
based on the comments and testimony received, the establishment of TRQs on certain
textile and apparel goods is appropriate as a means to encourage the importation
by trading partners of U.S. cotton and textile goods, in order to reduce the reliance
of such partners on inputs from other sources that are more likely to contain forced
labor inputs. Such TRQs, in combination with other tariffs on other products of
those trading partners, are appropriate to obtain the elimination of the acts, policies,
or practices found actionable under section 301 for those trading partners. The
Trade Representative has also informed me that establishing these TRQs is not feasible
at this time, but that establishing these TRQs will be feasible by September 1,
2026.
Finally, the Trade Representative has informed me that
following consultation with certain economies in these investigations and publication
of the Notice of Determinations, additional economies have imposed forced labor
import prohibitions (Cambodia, Guatemala, Honduras, India, Sri Lanka, and Trinidad
and Tobago) or undertaken commitments regarding forced labor import prohibitions
in an Agreement on Reciprocal Trade (Jordan). As a result of these actions, the
Trade Representative has advised me that the goods of these economies should be
tariffed at the 10 percent rate to further encourage these economies to effectively
enforce such prohibitions, and, in the case of Jordan, to enact and effectively
enforce its commitments regarding forced labor import prohibitions.
After considering the relevant issues and factors and
weighing the relevant considerations, including this information and advice from
the Trade Representative; the information, findings, and determinations in USTR’s
Notice of Determinations; and the need to obtain the elimination of the acts, policies,
and practices of the investigated economies found to be actionable under section
301, it is hereby directed as follows:
Section 1.
Tariffs and Exemptions. (a) Except as otherwise provided in this memorandum,
the Trade Representative shall impose the following tariff rates on all goods of
the economy for which an act, policy, or practice was found actionable under section
301:
(i) 10 percent tariff rate: The Trade Representative
shall impose a tariff of 10 percent on goods of Argentina, Bangladesh, Cambodia,
Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia,
Mexico, Pakistan, Sri Lanka, the United Kingdom, and Trinidad and Tobago.
(ii) Tariff rate of 10 percent or 12.5 percent, net
of MFN rate: For a product of the European Union or Taiwan, where such product’s
MFN tariff is less than 10 percent, the Trade Representative shall impose a section
301 tariff pursuant to these investigations so that the sum of the MFN tariff and
the section 301 tariff shall be 10 percent, and where such product’s MFN tariff
is greater than or equal to 10 percent, the Trade Representative shall impose a
section 301 tariff of zero. For a product of Japan, Korea, or Switzerland, where
such product’s MFN tariff is less than 12.5 percent, the Trade Representative shall
impose a section 301 tariff pursuant to these investigations so that the sum of
the MFN tariff and the tariff imposed pursuant to these investigations shall be
12.5 percent, and where such product’s MFN tariff is greater than or equal to 12.5
percent, the Trade Representative shall impose a section 301 tariff of zero. Capping
total duties in this manner is feasible, consistent with the terms of the Agreements
on Reciprocal Trade or similar arrangements, and appropriate to encourage these
economies to fulfill commitments regarding forced labor import prohibitions or to
enact and effectively enforce such a prohibition.
(iii) 12.5 percent tariff rate: For goods of all other
investigated economies, the Trade Representative shall impose a tariff rate of 12.5
percent.
(b) The Trade Representative shall exempt from the tariffs
imposed as directed in subsection (a) of this section the products identified in
the Annex to this memorandum for each economy for which an act, policy, or practice
was found actionable under section 301, as the products identified constitute:
(i) raw materials that if subject to these tariffs could
lead to the unavailability of domestic supply;
(ii) products that could cause economy-wide disruptions
if subject to these tariffs;
(iii) products that cannot be grown or produced in sufficient
quantities in the United States or obtained from other sources;
(iv) products for which these tariffs may not be effective
in obtaining the elimination of the acts, policies, and practices of economies found
to be actionable in the investigations; or
(v) 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 encourage
these economies to enact and effectively enforce a forced labor import prohibition.
(c) After considering the relevant issues and factors
and weighing the relevant considerations, including potential economic harm and
efficacy of tariffs, I determine that the products identified in the Annex to this
memorandum shall be exempted from the tariffs directed in subsection (a) of this
section, and the Trade Representative shall direct that the Harmonized Tariff Schedule
of the United States (HTSUS) be modified as provided in the Annex to this memorandum.
In my judgment, the tariffs directed in subsection (a) of this section with the
exemptions described in subsection (b) of this section are appropriate and feasible
to obtain the elimination of the acts, policies, or practices of the economies found
to be actionable under section 301.
Sec. 2.
Tariff-Rate Quotas. (a) As soon as the Trade Representative determines that
it is feasible, the Trade Representative shall:
(i) establish TRQs for Bangladesh, Cambodia, Indonesia,
and Malaysia, with an initial duration of 3 years, to encourage the importation
by each of these economies of U.S. textile goods, in order to reduce reliance on
inputs from other sources that are more likely to contain forced labor inputs; and
(ii) structure the TRQs for Bangladesh, Cambodia, Indonesia,
and Malaysia to allow for a certain volume of specific textiles and apparel, based
on that economy’s importation of U.S. inputs, to enter the United States free of
the section 301 tariffs provided for in section 1(a) of this memorandum.
(b) As soon as the Trade Representative determines that
it is feasible, the Trade Representative shall:
(i) establish TRQs for Bangladesh, Cambodia, Indonesia,
and Malaysia, with an initial duration of 3 years, to encourage the importation
by each of these economies of U.S. cotton, in order to reduce reliance on inputs
from other sources that are more likely to contain forced labor inputs; and
(ii) structure the TRQs for Bangladesh, Cambodia, Indonesia,
and Malaysia to allow for a certain volume of specific textile and apparel, based
on that economy’s importation of U.S. cotton, to enter the United States free of
the section 301 tariffs provided for in section 1(a) of this memorandum.
(c) Until the Trade Representative establishes the TRQs
described in subsections (a) and (b) of this section, the Trade Representative shall
impose the applicable section 301 tariffs provided for in section 1(a) of this memorandum
(here, 10 percent) on imports of specific textile and apparel of Bangladesh, Cambodia,
Indonesia, and Malaysia that will be covered by the TRQs for each of those economies.
(d) The Trade Representative shall modify the HTSUS
as appropriate to implement the directives in this section. The Trade Representative
shall publish a notice in the Federal Register regarding the establishment
and the effective date of the TRQs directed in this section.
(e) After considering the relevant issues and factors
and weighing the relevant considerations, including potential economic harm and
efficacy of tariffs, I determine that the actions directed in this section are appropriate
and feasible to obtain the elimination of the applicable economies’ acts, policies,
or practices found actionable under section 301.
Sec. 3.
Additional Explanation. (a) After considering the relevant issues and factors
and weighing the relevant considerations, including potential economic harm and
efficacy of tariffs, I determine that the actions directed in this memorandum are
appropriate and feasible to obtain the elimination of the act, policy, or practice
of each economy found to be actionable under section 301.
(b) In my judgment, each tariff of 10 percent on all
goods of Bangladesh, Cambodia, Indonesia, and Malaysia, with the exemptions for
certain goods as discussed in section 1(b) of this memorandum and the TRQs discussed
in section 2 of this memorandum, is appropriate and feasible to obtain the elimination
of the acts, policies, or practices of Bangladesh, Cambodia, Indonesia, and Malaysia
found to be actionable under section 301.
(c) In my judgment, each tariff of the above-described
percentages on all goods of each economy found actionable under section 301, with
the exemptions for certain goods as discussed in section 1(b) of this memorandum,
is appropriate and feasible to obtain the elimination of the acts, policies, or
practices of each economy found to be actionable under section 301.
(d) I have considered alternatives to the actions directed
in this memorandum, such as lower tariff rates, additional or fewer exemptions,
omitting TRQs from the responsive actions to be taken, altering the scope of goods
subject to a TRQ, negotiations without the imposition of tariffs, action under other
statutory authority without action under section 301, and combinations of various
approaches. After considering such alternatives, I determine that alternatives to
the actions directed in this memorandum would be less effective and less preferable
than the actions directed in this memorandum. In my judgment, the actions directed
in this memorandum are more appropriate than alternatives to obtain the elimination
of the economies’ acts, policies, or practices found actionable under section 301.
(e) The Trade Representative may modify or terminate
the tariffs, exemptions, or TRQs for an economy, as appropriate and subject to my
specific direction, if any, including pursuant to section 307 of the Trade Act of
1974 (19 U.S.C. 2417).
Sec. 4.
Severability. (a) If any provision of this memorandum or the application
or implementation of any provision of this memorandum with respect to any individual
section 301 investigation is held to be invalid, the remainder of this memorandum,
and the application or implementation of its provisions to any other investigation,
shall not be affected.
(b) This memorandum contains separate directives with
respect to 60 separate economies. Each tariff action directed in this memorandum
is separate from every other and imposed for the distinct purpose of obtaining the
elimination of the specific economy’s act, policy, or practice found actionable
under section 301. Each tariff action directed in this memorandum is only for the
purpose of obtaining the elimination of the specific economy’s act, policy, or practice
found actionable under section 301 and not for any other purpose. Each tariff action
directed in this memorandum, when implemented, is intended to operate independent
of each other, and the potential invalidity of one tariff directed in this memorandum
that is implemented should not affect any other tariff directed in this memorandum
that is implemented.
(c) If the implementation of any tariff action directed
in this memorandum is held to be invalid, only that tariff shall be treated as invalid.
Any other tariff action directed in this memorandum that is implemented shall continue
to apply.
(d) This section reflects my determination that each
tariff action directed in this memorandum that is implemented -‑ with any
combination of exemptions or even without any exemptions — should remain operative
to obtain the elimination of the specific economy’s act, policy, or practice found
actionable under section 301. In my judgment, each tariff action directed in this
memorandum is feasible and appropriate to obtain the elimination of the applicable
economy’s act, practice, or policy found actionable under section 301.
(e) This section further reflects my intent that each
tariff action at the rates set forth in section 1(a) of this memorandum, when implemented,
remain operative and that the exemptions set forth in section 1(b) of this memorandum
be operative to the maximum extent consistent with law. If any exemption to any
tariff directed in this memorandum, when implemented, is held to be invalid in whole
or in part, only that exemption or that part of the exemption should be treated
as invalid. The applicable tariff action directed in this memorandum should apply
to imports to which the invalidated exemption or the invalidated part of the exemption
applied before its invalidation.
Sec. 5.
General Provisions. (a) Nothing in this memorandum shall be construed to
impair or otherwise affect:
(i) the authority granted by law to an executive department
or agency, or the head thereof; or
(ii) the functions of the Director of the Office of
Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This memorandum shall be implemented consistent
with applicable law and subject to the availability of appropriations.
(c) This memorandum is not intended to, and does not,
create any right or benefit, substantive or procedural, enforceable at law or in
equity by any party against the United States, its departments, agencies, or entities,
its officers, employees, or agents, or any other person.
Sec. 6.
Publication. The Trade Representative is authorized and directed to publish
this memorandum in the Federal Register.
DONALD J. TRUMP