Overview
- The Office of the U.S. Trade Representative issued the proposal this week to add either 10% or 12.5% duties to imports from 60 economies after 60 Section 301 probes found failures to prohibit or effectively restrict goods linked to forced labour.
- The plan sorts countries into two groups with a 10% additional duty for partners judged to have partial prohibitions or enforcement and a 12.5% duty for the others, while exempting items such as energy, rare earths, certain metals, pharmaceuticals, some foods, and aircraft parts.
- The proposal includes a textile and apparel mechanism that would allow limited volumes of qualifying garments to enter the U.S. at reduced Section 301 rates, though specific quotas and rates have not been disclosed.
- The measure is open for written comments through July 6 and will be the subject of a public hearing on July 7, with parties invited to seek to testify and submit testimony summaries by the USTR’s deadlines.
- The action represents a legal pivot to Section 301 after U.S. courts curtailed earlier emergency tariff powers and is already affecting diplomacy, with Indian negotiators in New Delhi pressing for relief and other trading partners and industry groups signaling objections over costs and supply‑chain disruption.