On June 2, the Office of the United States Trade Representative (“USTR”) announced affirmative findings for all 60 economies under investigation for failure to impose a forced labor import prohibition and to effectively enforce such a prohibition under Section 301 of the Trade Act of 1974. 

The full report of findings can be found here.

As a result, USTR is proposing additional tariffs ranging from 10% to 12.5% be imposed on all products originating from such countries, except those provided in Annex A (see here, starting on page 18). 

A breakdown of the proposed additional tariff rates for each economy is as follows:

• 10% = Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, European Union, Guatemala, Indonesia, Malaysia, Mexico, Pakistan, Taiwan, and the United Kingdom.

• 12.5% = All other economies.

USTR also proposes a textile mechanism that would allow for a certain volume of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate. Under such a textile mechanism, the volume of reduced-duty imports from certain trading partners would be equivalent to the quantity of exports of textiles (e.g., U.S. produced man-made and cotton fiber textile inputs) from the United States to that trading partner. A certain volume of apparel and textile imports would also be allowed to enter the United States at the reduced Section 301 rate based on the volume of U.S. cotton and cotton products a trading partner imports from the United States during a certain period of time.

USTR is asking for public input on the proposed action until July 6, and will hold a public hearing on July 7. Interested stakeholders wishing to testify must request to do so by June 22. Feedback is requested on the following questions specifically:

• The specific products to be subject to increased duties, including whether products should be retained or removed from the scope of the action, or whether products currently listed in Annex A should be added to the scope of the action;
• Whether products listed in Annex A are appropriately excluded;
• The level of the increase, if any, in the rate of duty;
• Whether different tariff rates should be applied to an economy where the economy has made a commitment to the United States to impose and enforce a forced labor import prohibition; has imposed a forced labor import prohibition; or has imposed a partial regime with the effect of preventing the importation of certain forced labor goods.
• Features of a textile mechanism, including the U.S. and foreign products to be covered, the relative market opportunities for each side, and the tariff rate (if any) to be applied to products subject to that mechanism, as well as whether a similar mechanism should apply to any other product or sector.