Washington: The United States Trade Representative has initiated a series of investigations under Section 301 of the Trade Act of 1974, targeting the trade practices of 60 economies, including major players like China, the European Union, and India. These investigations aim to address the failure of these economies to impose and effectively enforce prohibitions on the importation of goods produced with forced labor. The investigations were initiated on March 12, 2026, following concerns that these practices unreasonably burden or restrict U.S. commerce.

According to The White House, on June 2, 2026, the Trade Representative found the acts, policies, and practices of these economies to be unreasonable and actionable under Section 301. Consequently, a proposal was made to impose ad valorem tariffs on goods from each investigated economy, with some exemptions. Specifically, a 10 percent tariff is proposed for economies that have made commitments regarding forced labor but have not effectively enforced them, while a 12.5 percent tariff is proposed for other economies identified in the investigation.

Public hearings and consultations with affected parties have been conducted, resulting in over 1,600 written comments and testimony from more than 100 witnesses. The Trade Representative has incorporated significant feedback, suggesting exemptions for certain products, such as raw materials and goods that cannot be produced domestically in sufficient quantities, to mitigate potential economic disruptions.

In addition to tariffs, the establishment of tariff-rate quotas (TRQs) is proposed for certain economies, including Bangladesh, Cambodia, Indonesia, and Malaysia. These quotas aim to incentivize the importation of U.S. cotton and textile goods, thereby reducing reliance on potentially forced labor inputs from other sources. The TRQs are expected to be feasible by September 1, 2026.

Furthermore, recent consultations have resulted in additional economies, such as Cambodia, Guatemala, and Sri Lanka, imposing forced labor import prohibitions. The goods from these economies will be subject to the 10 percent tariff rate to encourage effective enforcement.

The memorandum outlines specific tariff rates and exemptions, with a focus on obtaining the elimination of practices found actionable under Section 301. The Trade Representative is authorized to modify or terminate tariffs, exemptions, or TRQs as necessary.

The memorandum also includes provisions for severability, ensuring that each tariff action remains independent and operative, even if part of the directive is invalidated. The Trade Representative is directed to publish the memorandum in the Federal Register, making these determinations public and actionable.