By: Brandon French, Senior Associate and Anthony DiBello, Law Clerk, Braumiller Law Group
On June 2, 2026, the Office of the U.S. Trade Representative (USTR) released its report on Section 301 investigations into the practices of sixty trade partners’ economies with regard to forced labor prohibitions. The report came after extensive consultations, testimony, and comments, and the sixty economies investigated account for over 99% of imports into the U.S.
Under Section 301 of the Trade Act of 1974, USTR may take actions within the scope of its powers when it determines that a foreign country’s “act, policy, or practice” is both “unreasonable or discriminatory,” and “burdens or restricts United States commerce.” In its Federal Register report issued on June 3, 2026, USTR found that each investigated economy’s failure was “unreasonable” because it undermines the elimination of forced labor (a universal goal), allows firms that use forced labor to distort markets, undermines profitability for those other firms, and contributes to circumvention of prohibitions on forced labor that are already in place. Further, USTR found that these failures burden or restrict U.S. commerce in part by creating unfair competition for U.S. producers in the U.S. market and export markets.
The Federal Register report stated that fourteen economies imposed prohibitions, committed to prohibitions, or had some prevention regimes in place: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Malaysia, Mexico, Pakistan, Taiwan, and United Kingdom. These economies are subject to a proposed 10% additional ad valorem duty rate. The other forty-six economies, including Brazil, Japan, and China, “failed to impose and effectively enforce” prohibitions on forced labor imports, and are subject to a proposed 12.5% additional ad valorem duty rate.
The proposed 10% and 12.5% additional ad valorem duty rates apply to economies rather than specific shipments. However, Annex A to the Federal Register report includes numerous excluded products. Major categories of excluded products include fuels, agricultural products, electronics, and critical minerals. There are also carve-outs for informational materials, donations, accompanied baggage, products already subject to section 232 tariffs, and other products. In addition, the notice provides a rudimentary foundation for a proposed mechanism whereby economies that purchase U.S. textiles and import U.S. cotton face reduced Section 301 duty rates.
Consequences for Importers
The investigations into forced labor import prohibitions began in the weeks following the Supreme Court’s ruling that IEEPA tariffs are unconstitutional. Comments on the proposed Section 301 tariffs are due on July 6, 2026, and hearings begin on July 7, 2026, soon before the Administration’s Section 122 tariffs expire at the end of July (unless Congress intervenes). Assuming these Section 301 tariffs survive legal challenge after implementation, they represent a new avenue for the Trump Administration to further its tariff policies. Section 301 requires investigations and consultations prior to imposing tariffs (resulting in a slower route to tariff imposition than IEEPA), but it contains the key Congressional authorization for tariffs that IEEPA lacks.
Between now and the comment deadline of July 6, interested importers are encouraged to prepare for implementation of the additional Section 301 tariffs accordingly:
- Review the Harmonized Tariff Schedule classifications in Annex A of the Federal Register to determine whether particular products are subject to exclusions or carve-outs;
- Consider whether to participate in the comment process, and prepare data-backed comments highlighting supply chain constraints and/or other relevant data in favor of adding or removing particular items from Annex A;
- Revisit existing contracts and evaluate possibilities to adjust supply chains in order to incorporate products included in Annex A or other exemptions.
Braumiller Law Group will continue to monitor USTR’s proposal through the comment and hearing periods and will provide further updates as they become available. If you have any questions, feel free to reach out to bob@braumillerlaw.com.
Read more articles by these authors: