Actions by the United States in the Investigations Under Section 301 of the Trade Act of 1974 of the Acts, Policies, and Practices of 60 Economies Related to the Failure of Each Economy To Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced With Forced Labor

What happened

On July 23, 2026, Donald Trump signed a memorandum directing actions after the United States Trade Representative (Trade Representative) determined that 60 economies' policies regarding forced labor imports are unreasonable and burden U.S. commerce. The Trade Representative proposed ad valorem tariffs of 10 percent for goods from economies that impose a forced labor import prohibition but do not effectively enforce it, and 12.5 percent ad valorem for goods from other economies that lack such prohibitions. Exemptions for certain goods, such as raw materials and products causing economy-wide disruptions, are advised.

Why it matters

This policy aims to encourage 60 economies to implement and enforce prohibitions on goods made with forced labor, affecting international trade. It could make certain imported goods more expensive in the US due to tariffs, potentially impacting US businesses and consumers. The proposed textile mechanism aims to encourage trading partners to import US cotton and textile goods.

Who it affects

• ›Businesses importing goods from 60 economies.
• ›Consumers buying imported products now subject to tariffs.
• ›Economies investigated for forced labor import practices.
• ›U.S. cotton and textile industries.
• ›Businesses relying on specific raw materials or products now exempt from tariffs.

More from US