Section 301 Forced Labor Tariffs: USTR Proposes 10%–12.5% Additional Duties on 60 Economies

Most importers who saw "new Section 301 tariffs" in headlines this week assumed the story was about China. It isn't, or at least not exclusively. On June 2, 2026, USTR made affirmative findings in 60 separate Section 301 investigations and proposed additional duties of 10% or 12.5% on imports from virtually every major US trading partner: China, India, Vietnam, Japan, South Korea, and 55 others. The triggering issue in every case is failure to prohibit imports of goods made with forced labor.

The comment period closes July 6. Hearings begin July 7. If finalized, these duties stack on top of everything already in effect.

A Different Section 301 Than You're Thinking Of

The Section 301 tariffs most importers know are the 7.5%–25% duties on Chinese-origin goods under Lists 1 through 4A, imposed under Section 301(a)(1) of the Trade Act of 1974. That provision authorizes mandatory action when a foreign country violates or denies US rights under a trade agreement.

The forced labor tariffs use a different prong: Section 301(b)(1). This provision authorizes discretionary action when USTR finds that a foreign country's acts, policies, or practices are "unreasonable or discriminatory and burden or restrict United States commerce." USTR determined that failing to prohibit imports of goods made with forced labor meets that standard.

The legal hook matters because it shapes what importers can do about it. Under Section 301(b), the public comment and hearing process is where the scope and rates get contested before anything is finalized. That process is open right now.

The Section 301 complete guide covers the original China-focused investigations in detail. This is a structurally similar but legally distinct action, and the rate overlay it would create is entirely new.

Who Gets 10% and Who Gets 12.5%

USTR proposed two rates, and the split depends on whether a given economy already prohibits or has committed to prohibit forced-labor goods imports.

10% tier — economies with an existing forced-labor import prohibition, a binding commitment through an Agreement on Reciprocal Trade, or a partial regime USTR found sufficient: Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, the United Kingdom, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, and Taiwan.

12.5% tier — the remaining 46 economies: China, India, Japan, South Korea, Vietnam, Brazil, Australia, Singapore, Switzerland, Norway, the Philippines, Thailand, South Africa, Turkey, Saudi Arabia, and others.

For an importer sourcing from Vietnam, the 12.5% column applies. Vietnam wasn't covered by the original Section 301 Lists 1–4A, which makes this a genuinely new tariff layer on Vietnamese-origin goods.

What These Stack On Top Of

The rates look modest compared to existing Section 301 rates on Chinese goods. But the full stack is what matters.

Take a US importer of Vietnam-origin furniture. Right now, their duty stack includes the base HTS rate (Chapter 94 furniture runs 0%–6.5%) plus the 10% Section 122 tariff that replaced the invalidated IEEPA tariffs after the Supreme Court's February 2026 ruling. Effective rate: roughly 10%–16.5%, depending on the specific code.

If the proposed 12.5% Section 301 forced labor tariff takes effect on Vietnam-origin goods, that furniture carries approximately 22.5%–29% in total additional duties before any AD/CVD orders.

For Chinese-origin goods, the stack is already severe. An importer currently paying 25% Section 301 (List 3) plus 10% Section 122 would add another 12.5%, for a combined additional duty load of about 47.5% before the base rate. The China tariff layer breakdown is already among the most complex of any major trading partner; this action would extend that complexity to essentially every sourcing origin.

Even the 10% tier countries aren't exempt. Mexico carries USMCA benefits on qualifying goods, but non-originating goods or goods that don't satisfy USMCA rules of origin would still be subject to the proposed 10% levy.

The Textile Carve-Out

USTR also proposed a textile-specific mechanism as part of this action. A certain volume of apparel and textile imports from certain economies would enter at a reduced Section 301 tariff rate rather than the full 10% or 12.5%. The volume thresholds and eligible country list are part of what the comment process will determine.

Apparel importers should watch this closely. If your sourcing includes Bangladesh (10% tier), Vietnam (12.5% tier), or Cambodia (10% tier), the textile mechanism could limit exposure on apparel and textile lines. But "reduced" isn't zero, and the mechanism won't cover general merchandise.

What to Do Before July 6

Written comments to USTR are due July 6, 2026. Public hearings begin July 7. A final determination comes after that process. The docket, comment submission portal, and hearing registration are posted on USTR's Federal Register notices page under the relevant case numbers for each economy.

This is the window where importer input has the most practical effect. Comments should be specific: which HTS codes, what the cost impact is, whether alternative sourcing is available. Generic "tariffs are bad" filings rarely move the needle; comments tied to concrete product economics, bond exposure, or market disruption are more useful.

Two things worth doing now regardless of whether you comment:

Run the landed-cost scenarios. Model your cost structure under both the 10% and 12.5% tier rates for your primary sourcing countries. The landed cost calculator will show you the full rate stack by HTS code and origin; run it with the proposed additional duty added to see where your margins actually land before the final determination.

Check your bond. Customs bonds are calculated on duty exposure. If a new 12.5% Section 301 layer significantly increases your total annual duty liability, your continuous bond may need to be increased before the tariffs take effect. The bond calculation is based on the prior year's duty paid; a sudden rate increase on a large import program can create a bond shortfall overnight.

These tariffs aren't finalized. The comment period exists specifically to let affected parties argue for modifications, exclusions, or reduced rates. But assuming they'll be withdrawn or significantly narrowed before planning is a risk most importers can't afford.

Key Takeaways

USTR's June 2, 2026 determination proposes new Section 301 duties on 60 economies over failure to prohibit forced-labor imports — authorized under Section 301(b)(1) of the Trade Act of 1974, not the 301(a) used for China's existing tariff lists
Proposed rates are 10% for economies with existing forced-labor import prohibitions (including Canada, Mexico, EU, Bangladesh, Malaysia, Taiwan) and 12.5% for all others (including China, India, Vietnam, Japan, South Korea, Brazil)
These would stack on top of the current Section 122 tariff, any existing Section 301 tariffs on Chinese goods, and any applicable AD/CVD orders
Vietnam-origin goods currently have no Section 301 exposure; the proposed 12.5% would change that materially for sectors like furniture, apparel, electronics, and footwear
Written comments are due July 6, 2026; public hearings begin July 7
A textile carve-out mechanism is proposed to allow reduced rates on certain apparel and textile volumes from certain economies

TariffClassify tracks duty rate changes by HTS code and country of origin. If the proposed forced-labor Section 301 tariffs take effect, your watchlist items will reflect the new rate layer automatically. Save your HTS codes now to get emailed the moment any rate moves.