United States imposes Section 301 tariffs on 60 economies failing to address forced labor
Additional duties of 10% or 12.5% on imports from 60 economies, subject to certain exceptions
President Trump on July 23, 2026, signed a memorandum imposing additional duties under Section 301 of the Trade Act of 1974 of 10% or 12.5% on imports from 60 economies, subject to the exceptions provided in the Annex to the memorandum (e.g., products that if subject to the tariffs could lead to the unavailability of domestic supply or economy-wide disruptions).
The directive is based on a report issued by the United States Trade Representative (USTR) in June determining that the acts, policies, and practices of such 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. Read the related USTR release
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, China, Colombia, Costa Rica, Dominican Republic, Egypt, El Salvador, Guatemala, Guyana, Honduras, Hong Kong, 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 (EU), Indonesia, Mexico, and Pakistan.
The additional duties of 10% or 12.5% apply as follows:
- An additional duty rate of 10% applies to goods from Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, the UK, and Trinidad and Tobago.
- For products from the EU or Taiwan, if a product’s most-favored-nation (MFN) tariff is less than 10%, the sum of the MFN tariff and the Section 301 tariff shall be 10%.
- For a product of Japan, Korea, or Switzerland, if a product’s MFN tariff is less than 12.5%, the sum of the MFN tariff and the Section 301 tariff shall be 12.5%.
- A 12.5% rate applies to all other investigated economies.
The memorandum also provides that a certain volume of apparel and textile imports from Bangladesh, Cambodia, Indonesia, and Malaysia will be allowed to enter the United States without being subject to the Section 301 tariffs, 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.
Read the related USTR notice of action