USTR Proposes 10%–12.5% Section 301 Tariffs on 60 Economies Over Forced-Labor Enforcement Failures — Public Hearing Convenes July 7, With 'All Products' From Targeted Countries in Scope (July 2026)
The U.S. Trade Representative has made findings in its Section 301 forced-labor investigation — opened March 12, 2026 — and is now proposing additional tariffs on imports from 60 economies for failing to impose or effectively enforce a prohibition on goods made with forced labor. USTR proposes a 10% additional duty on economies that have a forced-labor import prohibition (or have committed to one, or run a partial regime) and 12.5% on all other targeted economies. Of the 60, USTR says 54 failed to both impose and effectively enforce such a prohibition and 6 failed to effectively enforce it. The proposal covers 'all products' of the investigated economies, with exceptions listed in an annex and a separate 'textile mechanism' that would let certain apparel and textile volumes from select economies enter at reduced rates. Written comments were due July 6, 2026, and a public hearing convenes July 7. Update: USTR announced final action on July 23, 2026 and the duties took effect at 12:01 a.m. EDT on July 24, 2026 — see our coverage of the final action for the confirmed tiers and carve-outs.
Real-World Impact
If adopted at the 12.5% rate, a unit with a $10 landed cost from a targeted economy would carry an extra $1.25 in duty (before any other stacked tariffs); at the 10% rate the added duty would be $1.00.
Key Points
- USTR has moved from investigation to proposed action in its Section 301 forced-labor case (investigation opened March 12, 2026), covering 60 economies
- Proposed additional duties: 10% on economies that impose (or have committed to, or partially enforce) a forced-labor import prohibition; 12.5% on all other targeted economies
- Of the 60 economies, USTR says 54 failed to impose and effectively enforce a prohibition and 6 failed to effectively enforce one
- The proposal applies to 'all products' of the investigated economies, with exceptions listed in an annex
- A separate 'textile mechanism' would allow certain apparel and textile volumes from select economies to enter at reduced tariff rates
- Written comments were due July 6, 2026 and a public hearing convened July 7, 2026; USTR announced final action July 23, 2026 with the duties effective 12:01 a.m. EDT July 24, 2026
What You Should Do Now
- 1Audit your supply chain for country of origin and flag any supplier in one of the 60 economies named in the forced-labor investigation
- 2Model both proposed rates (10% and 12.5%) into your landed-cost and margin projections, remembering these would stack on existing tariffs
- 3If you source apparel or textiles, review whether the proposed 'textile mechanism' reduced-rate volumes could apply to your products
- 4Confirm which tier your sourcing countries landed in under USTR's July 23 final action, which set the duties effective July 24, 2026
- 5Consult a licensed customs broker or trade attorney to verify HTS codes and quantify the exposure across your SKUs