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U.S. Imposes Near‑Global Section 301 Tariffs to Press Trading Partners on Forced Labor

Immediate lawsuits, diplomatic protests, doubts about whether tariffs alone can stop forced labor followed the move.

Overview

  • On July 24 the Office of the U.S. Trade Representative put into effect Section 301 duties on goods from 60 countries that together account for roughly 99.4% of U.S. trade.
  • The administration based the action on its finding that those partners have not adopted and effectively enforced bans on imports made with forced labor, after a 431‑page record with about 2,100 public comments and testimony from more than 100 witnesses.
  • USTR set a two‑tier rate structure, with 19 countries facing 10% duties and 41 countries facing up to 12.5% duties, while preserving carve‑outs for USMCA compliance and other existing exemptions.
  • Hours after the announcement small businesses filed suit in the U.S. Court of International Trade and President Trump publicly framed the move as an alternative route to the earlier tariffs the Supreme Court struck down.
  • More than 20 targeted governments have moved to adopt forced‑labor import bans, but advocates warn that without investment, phased relief and clear off‑ramps the measures risk becoming cosmetic and could raise costs for U.S. consumers and businesses.