US Proposes 10-12.5% Tariffs on 12 Countries Over Forced Labor Concerns

The Office of the United States Trade Representative dropped a nearly 100-page report on June 2 proposing fresh tariffs on imports from a dozen economies that, according to the agency, have failed to crack down on goods produced with forced labor. The proposed duties range from 10% to 12.5%, depending on how much effort each country has put into addressing the problem.

Here’s the thing: this isn’t a narrow action targeting a single bad actor. It’s the culmination of 60 separate Section 301 investigations launched back in March, covering a wide swath of the US trading landscape. The countries on the receiving end include both adversaries and close allies.

The USTR carved the targeted economies into two buckets. Countries that have at least demonstrated some commitment to banning forced-labor imports, including Canada and the European Union, would face a 10% additional duty. Economies that lack meaningful forced-labor import prohibitions, notably China and India, would get hit with 12.5%.

Trade Representative Jamieson Greer framed the action in moral terms, emphasizing that allowing forced-labor goods to flow freely into US markets is unacceptable.

This proposal doesn’t exist in a vacuum. It’s part of a wider effort by the Trump administration to restructure tariff policy following a Supreme Court decision in February 2026 that reshaped the legal framework around executive trade authority. The forced-labor investigations were initiated shortly after, in March, signaling that the administration intended to move quickly on multiple trade fronts simultaneously.

Section 301 is the same legal tool previously used to impose tariffs on Chinese goods over intellectual property theft. Its application to forced labor represents an expansion of how the provision is being deployed.

Canada and the EU landing on the list is particularly notable. Both are typically regarded as close trading partners with relatively robust labor protections. Their inclusion signals that the USTR’s standard for compliance is higher than what even allied economies have implemented.

For markets, the immediate question is how these tariffs would ripple through supply chains. A 10% to 12.5% additional duty on imports from major trading partners is not trivial.

The proposal still needs to go through a public comment period before any duties take effect.