# US forced-labour tariffs spark wider regional push

> Live situation record from CLSTR: https://clstr.news/situations/us-forcedlabour-tariff-proposals
> Updated: 2026-08-24T20:21:49.000Z. Sources: 82. Developments: 24.

The United States continues to expand its Section 301 forced-labour tariff regime, applying duties of 10% to 12.5% across dozens of economies. While initial measures targeted specific Latin American sectors, the scope has broadened significantly.

In response to U.S. pressure, several nations have implemented domestic reforms. Guatemala established a legal framework to ban forced-labour imports, and both India and Sri Lanka amended their trade and labour policies to prohibit such goods. Sri Lanka has further strengthened its stance by proposing amendments to the Employment of Women, Young Persons and Children Act of 1956, which would increase fines for child labour offences tenfold, from Rs. 10,000 to Rs. 100,000. Following the submission of regulatory measures and the appointment of a technical committee, Sri Lanka successfully moved from a 12.5% to a 10% tariff category in the U.S. review.

Tariff impacts remain a point of contention. Chile faces 12.5% duties on fruit and salmon, while Colombia and the Dominican Republic are also subject to 12.5% rates. The Dominican Republic is currently seeking to negotiate a modification under Section 301, proposing that tariffs only apply to foreign value-added rather than the cost of raw materials sourced from the United States. 

Regional pushback continues as Costa Rica and Guatemala have requested exemptions under CAFTA-DR, arguing that the duties disrupt supply chains and increase costs for U.S. consumers. The U.S. administration maintains these measures are necessary to enforce labour standards and prevent unfair trade advantages.

## Claims

- The USTR imposed a 12.5% additional tariff on Colombian exports to the United States effective July 24 2026. (corroborated by 4 sources)
- The USTR imposed a 12.5% additional tariff on Colombian exports under Section 301 for forced‑labor concerns. (corroborated by 4 sources)
- The United States imposed a 12.5% tariff on goods exported from the Dominican Republic. (corroborated by 3 sources)
- The United States Trade Representative announced Section 301 tariffs on shrimp imports from the ten largest exporting economies. (corroborated by 3 sources)
- The Colombian tariff targets sectors such as flowers, aluminum derivatives, electrical transformers, textiles and plastics, affecting about 20 % of the export basket. (corroborated by 3 sources)
- More than 60 economies are subject to new U.S. tariffs ranging from 10% to 12.5% under Section 301. (corroborated by 3 sources)
- Critics argue the tariffs lack detailed justification and may be used to circumvent congressional authority. (corroborated by 3 sources)
- The 12.5% tariff is higher than the 10% duty applied to other Central American countries. (corroborated by 2 sources)
- India received a reduced 10% tariff after adopting a domestic prohibition on imports of goods produced with forced labour. (corroborated by 2 sources)
- Vietnam’s foreign ministry said the USTR decision does not fully reflect Vietnam’s efforts to prevent and eliminate forced labour. (corroborated by 2 sources)
- Ecuador was assigned an additional 10% tariff, but bananas and several other products are exempt from the surcharge. (corroborated by 2 sources)
- The tariffs are imposed under Section 301 of the Trade Act of 1974 as a response to insufficient mechanisms to prevent forced‑labor goods. (corroborated by 2 sources)

## Timeline

### 2026-08-24: Peruvian exporters face pressure from new US tariffs

Peruvian exporters face increased pressure as a new 12.5% tariff affects US$5.3 billion in trade with the United States, impacting sectors like blueberries and grapes.

2 sources. https://clstr.news/cluster/peruvian-exporters-face-pressure-from-new-us-tariffs

### 2026-08-24: Dominican Republic manages import duties and U.S. tariff negotiations

The Dominican Republic manages complex import duties via the DGA and DGII while negotiating with the U.S. to address a 12.5% tariff affecting its exports.

2 sources. https://clstr.news/cluster/dominican-republic-manages-import-duties-and-us-tariff-negotiations

### 2026-08-15: Sri Lanka strengthens laws against child and forced labour

Sri Lanka is strengthening laws to combat child labour by proposing a tenfold increase in fines and introducing new regulations to prevent forced-labour imports following a US trade review.

4 sources. https://clstr.news/cluster/sri-lanka-strengthens-laws-against-child-and-forced-labour

### 2026-07-30: US tariffs target Colombian, Chilean, Dominican and Peruvian exports

The US has added a 12.5% tariff on exports from Colombia, Chile, the Dominican Republic and Peru, affecting $4.44 bn of Colombian trade and key sectors like flowers and aluminium.

6 sources. https://clstr.news/cluster/us-adds-125-tariffs-on-peru-and-colombia-exports-over-forcedlabour

### 2026-07-27: US adds 10‑12.5% forced‑labour tariffs on shrimp imports from top exporters

US imposes 10‑12.5% Section 301 forced‑labour tariffs on shrimp from its top ten suppliers; India gets a reduced 10% rate after banning forced‑labour goods, while Vietnam objects, saying the move ignores its I‑

9 sources. https://clstr.news/cluster/united-states-imposes-forcedlabour-tariffs-on-shrimp-imports-from-top-exporters

### 2026-07-26: Dominican Republic faces 12.5% U.S. tariff on its exports

The U.S. imposed a 12.5% tariff on Dominican Republic exports, prompting a new anti‑forced‑labour decree and diplomatic actions suggested by experts and officials.

3 sources. https://clstr.news/cluster/dominican-republic-faces-125-us-tariff-on-exports-government-issues-forcedlabor-ban

### 2026-07-26: U.S. adds forced‑labor tariffs on Colombia, Ecuador and other exporters

The USTR imposed 10‑12.5 % tariffs on over 60 countries for forced‑labor concerns, hitting Colombia’s flowers and other goods, Ecuador’s imports (with banana exemptions), and prompting Chilean fruit exporters –

15 sources. https://clstr.news/cluster/us-section-301-tariffs-on-chilean-fruit-and-ecuadorian-bananas-prompt-industry-pushback

### 2026-07-24: US lifts tariffs on Chile, India, Malaysia, Sri Lanka over forced‑labour rules

The US imposed forced‑labour related tariffs: 12.5% on Chilean food, wine and salmon; 10% on Indian textiles, Malaysian goods, and Sri Lankan exports, impacting key sectors across these countries.

10 sources. https://clstr.news/cluster/us-imposes-10-section-301-tariff-on-sri-lankan-exports-over-forcedlabor-ban

### 2026-07-23: Guatemala seeks zero tariffs as US imposes new 10% duties over forced‑labour claims

Guatemala asked the US to grant permanent 0% tariffs on many exports ahead of a July 24 deadline, while the US announced a new 10% duty on Guatemalan goods over forced‑labour concerns.

6 sources. https://clstr.news/cluster/guatemala-seeks-zero-tariffs-as-us-imposes-new-10-duties-over-forcedlabour-claims

### 2026-07-20: Sri Lanka Stock Market Slides Amid Hormuz Tensions and US Forced‑Labour Ban

Sri Lanka’s stock market fell as a new forced‑labour import ban—aimed at averting a U.S. tariff—combined with rising Strait of Hormuz tensions that could lift oil prices and strain the economy.

3 sources. https://clstr.news/cluster/sri-lanka-stock-market-slides-amid-hormuz-tensions-and-us-forcedlabour-ban

### 2026-07-17: Sri Lanka bans forced‑labour imports under US trade pressure

Sri Lanka barred imports made with forced labour after a U.S. tariff threat, while the World Bank urged stronger export competitiveness at an exporters’ meeting.

4 sources. https://clstr.news/cluster/sri-lanka-bans-forcedlabour-imports-under-us-trade-pressure

### 2026-07-14: India Amends Trade Policy to Ban Imports Made with Forced Labour

India amended its trade policy to forbid imports made with forced labour, effective in 30 days amid a US probe; Sri Lanka also introduced regulations banning such imports.

12 sources. https://clstr.news/cluster/india-and-sri-lanka-ban-imports-of-forcedlabour-goods

### 2026-07-08: Costa Rica and Guatemala ask US to lift proposed tariffs

Costa Rica and Guatemala have asked the U.S. trade office to remove proposed tariffs, arguing the duties would raise costs, disrupt supply chains and undermine the benefits of the CAFTA‑DR agreement.

4 sources. https://clstr.news/cluster/costa-rica-and-guatemala-ask-us-to-lift-proposed-tariffs

### 2026-07-08: India urges US to drop forced‑labour tariffs and pursue cooperation

India told the USTR to replace a proposed 12.5% forced‑labour tariff with cooperative compliance, citing existing safeguards and urging negotiations, while a SBI report advised a cautious, strategic approach to

5 sources. https://clstr.news/cluster/india-pushes-back-against-us-forcedlabour-tariff-proposal

### 2026-07-06: Guatemala bans imports of forced‑labour goods to avert US tariff threats

Guatemala enacted a ban on imports of goods made with forced labour, creating a list of offending foreign firms, to meet a US trade pact and avoid a potential 10‑12.5 % tariff under a USTR Section 301 probe.

3 sources. https://clstr.news/cluster/guatemala-bans-imports-of-forcedlabour-goods-to-avert-us-tariff-threats

### 2026-07-02: India to Contest U.S. Forced‑Labour Tariff Proposal

India will challenge a U.S. plan to impose a 12.5% tariff on its exports over forced‑labour claims, arguing the evidence is weak and the duty would hurt supply chains.

3 sources. https://clstr.news/cluster/india-to-contest-us-forcedlabour-tariff-proposal

### 2026-06-26: Sri Lanka and Thailand Finalize Free Trade Agreement

Sri Lanka and Thailand have signed a free trade agreement to cut tariffs and boost investment, while Thailand pushes ahead with other trade talks, including a deal with the EU.

2 sources. https://clstr.news/cluster/sri-lanka-and-thailand-finalize-free-trade-agreement

### 2026-06-25: Sri Lanka rupee steadies as customs revenue tops target and $1 bn illicit transfer probe launches

Sri Lanka’s rupee steadied near 337/USD, customs beat its June revenue target, and a $1 bn illicit‑transfer investigation was launched.

3 sources. https://clstr.news/cluster/sri-lanka-rupee-steadies-as-customs-revenue-tops-target-and-1-bn-illicit-transfer-probe-launches

### 2026-06-25: Sri Lanka's apparel exports surge to May record, handloom sector set for growth

Sri Lanka's apparel exports hit a May record of $394 million, driven by US demand, while officials push the handloom sector toward export growth.

3 sources. https://clstr.news/cluster/sri-lankas-apparel-exports-surge-to-may-record-handloom-sector-set-for-growth

### 2026-06-23: United States forced‑labor tariff probe prompts Guyana’s trade defense

The US proposes 10‑12.5% tariffs on forced‑labour imports from 60 nations; a study shows rising shipment redactions, and Guyana prepares to defend its trade record at a USTR hearing to avoid the duties.

3 sources. https://clstr.news/cluster/united-states-forcedlabor-tariff-probe-prompts-guyanas-trade-defense

### 2026-06-19: Sri Lanka Overhauls Customs and Labour Laws While Exporters Protest New Forex Conversion Rule

Sri Lanka is reforming customs and labour rules to avert a 12.5% US tariff, while exporters object to a new rule forcing conversion of export earnings within ten days, citing operational and cost concerns.

2 sources. https://clstr.news/cluster/sri-lanka-overhauls-customs-and-labour-laws-while-exporters-protest-new-forex-conversion-rule

### 2026-06-05: United States threatens new tariffs on India as trade negotiating leverage

The U.S. proposes a 12.5% tariff on Indian exports, using it as leverage in trade talks, amid broader duties on several countries and recent tariff reductions.

2 sources. https://clstr.news/cluster/united-states-threatens-new-tariffs-on-india-as-trade-negotiating-leverage

### 2026-06-04: Sri Lanka Pushes for U.S. Tariff Exemption on Apparel Exports

Sri Lanka seeks to avoid a proposed 12.5% U.S. labour tariff on apparel exports, with government optimism and the Ceylon Chamber urging high‑level engagement to protect export competitiveness.

2 sources. https://clstr.news/cluster/sri-lanka-pushes-for-us-tariff-exemption-on-apparel-exports

### 2026-06-03: United States threatens 12.5% tariff on Indian goods over forced‑labour concerns

The U.S. Trade Representative added India to a forced‑labour list, proposing 10‑12.5% tariffs that could hit Indian solar, electronics and textile exports.

2 sources. https://clstr.news/cluster/united-states-threatens-125-tariff-on-indian-goods-over-forcedlabour-concerns

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Cite as: US forced-labour tariffs spark wider regional push. CLSTR, https://clstr.news/situations/us-forcedlabour-tariff-proposals