Trump administration plans new tariffs on 60 trading partners over forced labor import enforcement failures

• Countries with existing or committed forced labor bans face 10% tariffs, while all other economies face 12.5% tariffs on imports
• Nearly all 60 investigated countries imported cotton from China in 2021-2025, with particular concerns about Xinjiang cotton produced by persecuted Uyghurs under forced labor conditions
• The proposal includes a mechanism for lower tariff rates on certain apparel and textile volumes, with public comments due July 6 and hearings scheduled for July 7

Summary

The Trump administration announced plans Tuesday to impose new tariffs on up to 60 trading partners for failing to adequately enforce forced labor import bans. Countries will face additional tariffs of either 10% or 12.5%, depending on their enforcement measures.

Key Details:

The U.S. Trade Representative (USTR) report identified 54 countries—including China, Vietnam, Japan, South Korea, and the United Kingdom—that failed to impose and enforce forced labor bans. An additional six countries, including Canada, Mexico, and the European Union, failed to effectively enforce existing prohibitions.

Tariff Structure:

• 10% additional tariff: Countries with existing bans, commitments to impose prohibitions, or partial enforcement regimes
• 12.5% additional tariff: All other economies without adequate measures

Market Implications:

The textile and apparel sectors face particular scrutiny, as forced labor is prevalent in cotton production, especially from China's Xinjiang region where ethnic Uyghurs face persecution and forced labor. The proposal includes a mechanism allowing certain volumes of apparel and textiles to enter at lower rates, though supply chain complexity makes tracing raw materials difficult.

USTR Ambassador Jamieson Greer stated these failures create an "unlevel playing field" for American workers and allow companies using forced labor to produce goods at lower costs, distorting market conditions.

Timeline:

Written comments are due July 6, with USTR hearings scheduled for July 7. Parties wishing to testify must submit requests by June 22.

The investigation began in March, with the report noting nearly all 60 countries imported cotton from China between 2021 and 2025.