Under the plan, goods from nations that have not banned forced labor — such as China, India, Britain, and Japan — will face a 12.5 percent tariff. Countries that have bans but are accused of failing to enforce them, including those in the European Union, Canada, and Mexico, will face 10 percent tariffs. The tariffs are scheduled to take effect next month after a public comment period.
The decision comes from a Section 301 investigation by the Office of the U.S. Trade Representative. This 1974 law gives the president power to respond to unfair trade practices. Jamieson Greer, the president’s top trade official, said the policy is necessary to protect American workers.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” Greer said. “This creates a dynamic where American workers are forced to compete globally on an unlevel playing field. We will no longer tolerate this disparity.”
The administration pointed to concerns about cotton from China’s Xinjiang region, where the United Nations has reported widespread forced labor. Chinese officials strongly denied the accusations.
Strong Reactions from Trade Partners
Trading partners reacted quickly and sharply. The European Union called the tariffs “unjustified.” Bernd Lange, head of the European Parliament’s trade committee, said the move was absurd and accused the U.S. of inventing reasons to justify new taxes on imports.
“Washington is desperately searching for new legal grounds to sustain its tariff policy,” Lange wrote on X.
Legal Background
The new tariffs are an attempt to rebuild a broader trade policy after the Supreme Court struck down most of President Trump’s earlier emergency tariffs from 2025. The court ruled that Trump had overstepped his authority by using a 1977 law. A temporary 10 percent tariff on all imports is set to expire on July 24.
Trade experts say these new Section 301 tariffs are on stronger legal ground than the previous emergency measures. Presidents from both parties, including Ronald Reagan and Joe Biden, have used this authority in the past.
Roughly half of all U.S. imports — about $3.4 trillion worth of goods each year — will be exempt from the new tariffs. This includes many products covered under the U.S.-Mexico-Canada trade agreement.
Part of a Larger Plan
These forced-labor tariffs are only one piece of the administration’s long-term trade strategy. A separate investigation is looking at countries accused of having too much production capacity, which allows them to flood markets with cheap goods. That probe targets 16 economies, including China, the EU, Japan, Mexico, South Korea, and India. New tariffs from that investigation are expected this summer.
While the process takes longer than emergency tariffs, experts say it is less likely to be overturned in court and has broader bipartisan support in Congress.
The administration must now collect public comments and hold hearings before the tariffs go into effect.