Overview
- On June 2 the Office of the U.S. Trade Representative concluded that 60 investigated economies failed to prohibit or effectively enforce bans on imports made with forced labor and recommended country‑wide tariffs of 10 percent or 12.5 percent.
- The plan splits targets into two tiers with 10 percent duties for 14 economies and 12.5 percent for the remaining 46, and it lists specific product exclusions plus a textile mechanism that would allow limited reduced‑duty apparel volumes tied to reciprocal trade flows.
- USTR set a public schedule for the rulemaking with requests to appear due June 22, written comments due July 6, and public hearings beginning July 7 as it seeks to finalize measures before the temporary Section 122 tariffs expire on July 24.
- Trading partners and industry groups have immediately disputed USTR’s findings and warned of diplomatic strain while USTR says it will respect existing tariff caps in bilateral deals such as those with the EU and Japan.
- Businesses warn the proposal could raise costs and disrupt supply chains for goods like medical devices, legal questions remain about whether these duties can be stacked with other Section 301 remedies, and courts are likely to face challenges if duties are finalized.