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USTR findings and proposed Section 301 tariffs on 60 economies failing to address forced labor

Proposed action would impose additional duties of 10% or 12.5% on imports from 60 investigated economies.

june 3, 2026

The Office of the United States Trade Representative (USTR) on June 2, 2026, determined under Section 301 of the Trade Act of 1974 that the acts, policies, and practices of 60 economies failing to prohibit and effectively enforce a ban on the importation of goods produced with forced labor are unreasonable and burden or restrict U.S. commerce, and proposed additional duties on products from those economies.

The determination is supported by a comprehensive USTR report detailing the acts, policies, and practices of these various economies. In particular, the USTR determined:

  • The following 54 economies have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor:
    • Algeria; Angola; Argentina; Australia; the Bahamas; Bahrain; Bangladesh; Brazil; Cambodia; Chile; China, People’s Republic of; Colombia; Costa Rica; Dominican Republic; Egypt; El Salvador; Guatemala; Guyana; Honduras; Hong Kong, China; India; Iraq; Israel; Japan; Jordan; Kazakhstan; Kuwait; Libya; Malaysia; Morocco; New Zealand; Nicaragua; Nigeria; Norway; Oman; Peru; the Philippines; Qatar; Russia; Saudi Arabia; Singapore; South Africa; South Korea; Sri Lanka; Switzerland; Taiwan; Thailand; Trinidad and Tobago; Türkiye; United Arab Emirates; United Kingdom; Uruguay; Venezuela; and Vietnam.
  • The following six economies have failed to effectively enforce a prohibition on the importation of goods produced with forced labor: Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan.

In response to these findings, the USTR is proposing additional duties on all products of the investigated economies, except as provided in Annex A to the Federal Register notice. Under the proposal, an additional duty rate of 10% would apply to economies that impose a forced labor import prohibition, have committed to do so through an agreement on reciprocal trade, or have established a partial regime to prevent such imports, while a 12.5% rate would apply to all other investigated economies. The proposal also includes a textile mechanism that would allow a certain volume of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate.

Comments on the proposed actions are due by July 6, 2026, and the USTR will hold public hearings on July 7, 2026, with requests to appear and summaries of testimony due by June 22, 2026.

Read a related USTR release.

For more information, contact a professional with KPMG Trade & Customs services:

 

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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