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[BUSINESS] · United States, China, India, Brazil, Japan · 2 sources

U.S. Section 301 Forced Labor Tariffs Target 60 Trade Partners

The U.S. Trade Representative (USTR) launched 60 parallel investigations under Section 301 of the Trade Act of 1974, alleging forced‑labor enforcement failures across virtually all major U.S. trading partners. The interim proposal adds a 10% duty on 14 economies, including the United Kingdom, Canada, and the European Union, and a 12.5% duty on the remaining 46, covering roughly 99.4% of U.S. imports. The measures stack on existing tariffs, with exclusions for energy products, critical minerals, certain foods, pharmaceuticals and electronics.

Treasury Secretary Scott Bessent said that if the Section 301 investigations succeed, the temporary 10% global tariff (Section 122) set to expire on July 24 could be replaced by the new forced‑labor duties, potentially returning tariffs to their previous levels. Comments on the proposal are due July 6, with hearings beginning July 7. Companies are urged to map supply‑chain exposure, assess duty‑stacking impacts, and review product eligibility under Annex A exclusions.