US Proposes New Tariffs on 60 Countries Over Forced Labor Concerns

The US Trade Representative targets 60 economies for alleged forced labor failures. The USTR found 54 economies including China, Vietnam, Taiwan, UK and India failed to impose forced labor import prohibition. Proposed tariffs include 10% on Canada, Mexico and the EU. Public comments are due July 6, 2026. The Supreme Court struck down Trump tariffs under IEEPA on February 20, 2026.

Proposed tariffs on 60 countries

• ▪The proposed tariffs will undergo a public comment period before a final decision is made
• ▪The US Trade Representative proposed new duties targeting 60 economies for alleged failures to act against forced labour
• ▪The Trump administration seeks to rebuild its tariff agenda following legal setbacks

Forced labor enforcement findings

• ▪USTR Jamieson Greer stated that the failure of the most important trading partners to address the importation of goods made with forced labour is unacceptable
• ▪Six economies were deemed not to have effectively enforced forced labour import prohibitions: Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan
• ▪Washington launched investigations into trading partners including China, the European Union and Japan months before June 3, 2026
• ▪The USTR determined that 54 economies failed to impose and effectively enforce a forced labour import prohibition
• ▪The 54 economies that failed to impose and effectively enforce a forced labour import prohibition include China, Vietnam, Taiwan, the United Kingdom and India

Tariff rates by country

• ▪The USTR would impose additional duties of 12.5 per cent on the remaining 45 countries that it investigated
• ▪The proposed tariffs range from 10 per cent to 12.5 per cent according to a government filing
• ▪The USTR determined it would impose 10 per cent duties on imports from Canada, Ecuador, the EU, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Britain

Exemptions for specific goods

• ▪Goods from Canada and Mexico that comply with a North American free trade pact will be exempt from the proposed tariffs
• ▪The proposed tariffs come with exemptions for beef, coffee and certain fruits and nuts
• ▪Certain textiles and apparel will be exempt from the proposed tariffs

Public comment period process

• ▪The public is invited to provide written comments on the proposed tariffs by July 6, 2026
• ▪The USTR will hold hearings after the written comment period

Supreme Court legal setbacks

• ▪The Trump administration imposed a 10 per cent temporary tariff on February 20, 2026
• ▪The Supreme Court struck down US President Donald Trump's tariffs under the International Emergency Economic Powers Act on February 20, 2026

Perspective of Trump administration

• ▪USTR Jamieson Greer stated that the failure of the most important trading partners to address the importation of goods made with forced labour is unacceptable
• ▪The Trump administration seeks to rebuild its tariff agenda following legal setbacks