2026-11296NoticeWallet

U.S. Plans Tariffs on Forced-Labor Trade Cheaters

Published Date: 6/5/2026

Notice

Summary

The U.S. Trade Representative found that many countries aren’t stopping goods made with forced labor from entering the U.S. To fix this, they’re planning to add extra taxes (tariffs) on products from these countries, with rates between 10% and 12.5%. They’re also offering a special deal for some clothing imports and want your thoughts before finalizing these changes by early July 2026.

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

10% Tariff on Specific Partners

The Trade Representative proposes additional ad valorem duties of 10% on products of certain investigated economies. The 10% rate is proposed for economies listed in the notice, including Canada; Ecuador; the European Union; Indonesia; Mexico; Pakistan; Argentina; Bangladesh; Cambodia; El Salvador; Guatemala; Malaysia; Taiwan; and the United Kingdom, except for items excluded in Annex A.

12.5% Tariff on Other Economies

For the investigated economies not covered by the 10% grouping, the Trade Representative proposes additional ad valorem duties of 12.5% on all products of those economies, except for items listed in Annex A. The proposal would apply to the remaining economies named in the investigations.

Textile Mechanism for Reduced Duties

USTR proposes a textile mechanism that would allow a certain volume of apparel and textile imports from certain trading partners to enter the United States at a reduced Section 301 tariff rate. The reduced-volume access would be tied to the quantity of U.S. textile exports (or U.S. cotton and cotton product exports) to a trading partner over a specified period.

Annex A Exemptions from Tariffs

Annex A lists HTSUS provisions and product categories that would be excluded from the proposed additional duties. Exemptions include informational materials (e.g., books), donations, accompanied baggage, articles subject to section 232 tariffs, USMCA-compliant goods of Canada or Mexico, and certain textiles and apparel that enter duty-free under CAFTA-DR, among other specified HTSUS subheadings.

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Key Dates

Published Date
6/5/2026

Department and Agencies

Department
Independent Agency
Agency
Trade Representative, Office of United States
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