Washington: The United States has taken decisive action against 60 global economies concerning their failure to impose and effectively enforce prohibitions on the importation of goods produced with forced labor. On March 12, 2026, the United States Trade Representative (USTR) initiated investigations under section 301 of the Trade Act of 1974 to determine if these economies' practices were unreasonable or discriminatory and whether they burdened or restricted U.S. commerce.

According to The White House, the USTR found that the practices of all 60 economies were actionable under section 301 of the Trade Act. Consequently, on June 2, 2026, the USTR proposed actions to eliminate these practices, including imposing ad valorem tariffs on goods from each investigated economy, with some exemptions. Tariffs of 10 percent were proposed for economies with partial enforcement of forced labor import prohibitions, while a 12.5 percent tariff was suggested for economies entirely failing to enforce such prohibitions. Exemptions were advised for specific products critical to the U.S. economy or those unlikely to contribute to the elimination of forced labor practices.

The USTR's proposal includes establishing tariff-rate quotas (TRQs) for textile and apparel goods from economies like Bangladesh, Cambodia, Indonesia, and Malaysia, encouraging them to rely more on U.S. cotton and textile inputs. These TRQs aim to reduce the dependency on forced labor inputs from other sources. Following consultations, economies like Cambodia, Guatemala, and others have reportedly taken steps to impose or commit to forced labor prohibitions, leading to a proposed 10 percent tariff to encourage further enforcement.

The USTR received substantial public input, with over 1,600 written comments and testimony from over 100 witnesses during hearings held in July 2026. These inputs have been considered in advising appropriate tariff rates, exemptions, and TRQs. The USTR's recommendations aim to eliminate the actionable practices of these economies by implementing tariffs and exemptions strategically.

As the U.S. seeks to enforce these measures, the USTR is authorized to modify or terminate tariffs, exemptions, or TRQs as necessary. The actions are designed to be severable, ensuring that any invalidation of a specific tariff or exemption does not affect the overall strategy. The memorandum detailing these actions will be published in the Federal Register for transparency and legal adherence.