New Proposed Section 301 Tariffs After USTR Concludes Forced Labor Investigation
 

On June 2, 2026, the U.S. Trade Representative (USTR) announced the results of its Section 301 investigations into 60 trading partners regarding their policies and enforcement measures related to the importation of goods produced with forced labor. USTR determined that none of the 60 economies currently meet the standard for both imposing and effectively enforcing a prohibition on the importation of goods made with forced labor and has proposed additional duties as a remedial measure. The proposed actions are currently subject to public comment and review.

USTR will hold public hearings on July 7, 2026. Parties wishing to testify must submit a request to appear, together with a summary of their testimony, no later than June 22, 2026. Written comments on the proposed actions must be submitted by July 6, 2026.

Proposed Additional Duty Rate – 10%

The following economies are subject to a proposed additional Section 301 duty of 10%:

• Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, European Union, Guatemala, Indonesia, Malaysia, Mexico, Pakistan, Taiwan, and the United Kingdom.

Proposed Additional Duty Rate – 12.5%

The following economies are subject to a proposed additional Section 301 duty of 12.5%:

• Algeria, Angola, Australia, The Bahamas, Bahrain, Brazil, Chile, People’s Republic of China, Colombia, Costa Rica, Dominican Republic, Egypt, Guyana, Honduras, Hong Kong-China, India, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Thailand, Trinidad and Tobago, Türkiye, United Arab Emirates, Uruguay, Venezuela, and Vietnam.

Under Annex A of Federal Register Notice 2026-11296 (91 FR 34272), several categories of merchandise are currently proposed for exemption from the additional duties. These exemptions remain subject to modification or withdrawal at any time. Proposed exempt categories include:

• Informational materials
• Donations
• Accompanied baggage
• Articles and parts already subject to Section 232 duties
• USMCA-compliant goods
• Certain textile and apparel products that qualify for duty-free treatment under CAFTA-DR and are manufactured in Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua

Additional details regarding proposed exemptions and product classifications are available in the Federal Register notice and related USTR publications.

Although the proposed duties have not yet been implemented, many trade observers believe these measures could replace the current Section 122 tariffs when those tariffs expire on July 24, 2026. This remains speculative, and no formal announcement has been made regarding the final disposition of the Section 122 measures.

The information provided herein is intended for general informational purposes only and should not be construed as legal advice. CV International will continue to monitor developments and provide updates as additional information becomes available.

Compliance & Customs Services
CV International, Inc.