MEMORANDUM FOR THE UNITED STATES TRADE REPRESENTATIVE
Subject: Actions by the United States in the Investigations under Section 301 of the Trade Act of 1974 of the Acts, Policies, and Practices of 60 Economies Related to the Failure of Each Economy to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor
On March 12, 2026, the United States Trade Representative (Trade Representative) launched investigations under Section 301 of the Trade Act of 1974, as amended, to scrutinize the acts, policies, and practices of 60 economies. These investigations aim to determine whether these economies fail to prohibit or effectively enforce a ban on importing goods produced wholly or partially through forced labor, and whether such failures are unreasonable or discriminatory, thereby burdening or restricting U.S. commerce. The initiation of these investigations was recorded in 91 Fed. Reg. 12884. The economies under investigation include:
1. Algeria
2. Angola
3. Argentina
4. Australia
5. The Bahamas
6. Bahrain
7. Bangladesh
8. Brazil
9. Cambodia
10. Canada
11. Chile
12. China, People’s Republic of
13. Colombia
14. Costa Rica
15. Dominican Republic
16. Ecuador
17. Egypt
18. El Salvador
19. European Union
20. Guatemala
21. Guyana
22. Honduras
23. Hong Kong, China
24. India
25. Indonesia
26. Iraq
27. Israel
28. Japan
29. Jordan
30. Kazakhstan
31. Kuwait
32. Libya
33. Malaysia
34. Mexico
35. Morocco
36. New Zealand
37. Nicaragua
38. Nigeria
39. Norway
40. Oman
41. Pakistan
42. Peru
43. Philippines
44. Qatar
45. Russia
46. Saudi Arabia
47. Singapore
48. South Africa
49. South Korea
50. Sri Lanka
51. Switzerland
52. Taiwan
53. Thailand
54. Trinidad and Tobago
55. Türkiye
56. United Arab Emirates
57. United Kingdom
58. Uruguay
59. Venezuela
60. Vietnam
On June 2, 2026, the Trade Representative concluded that the acts, policies, and practices of each of these economies are unreasonable and restrict U.S. commerce, making them actionable under Section 301(b)(1) (19 U.S.C. 2411(b)(1)). This determination was documented in Notice of Determinations: 2026-11296; 91 Fed. Reg. 34272.
Following these findings, the Trade Representative proposed actions under Section 301 to eliminate the identified practices. This includes imposing ad valorem tariffs on all goods from the investigated economies, with certain exemptions. The proposed tariffs are set at 10 percent ad valorem for economies that impose a forced labor import prohibition but do not effectively enforce it, such as Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan. Additionally, economies with commitments in their Agreements on Reciprocal Trade regarding forced labor import prohibitions, like Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia, and Taiwan, are also subject to these tariffs. The United Kingdom, which has a partial regime to prevent the importation of certain forced labor goods, is included as well. For other economies failing to impose forced labor import prohibitions, a 12.5 percent tariff is proposed. Furthermore, a textile mechanism is suggested to allow a certain volume of apparel and textile imports into the United States at a zero tariff rate.
The Office of the United States Trade Representative (USTR) sought comments from interested parties on these proposals and held public hearings on July 7, 8, and 9, 2026. These hearings received over 1,600 written comments and testimony from more than 100 witnesses.
The Trade Representative has shared significant feedback from the proposed actions and provided advice on suitable measures, including varying tariff rates, exemptions for specific products, and tariff-rate quotas (TRQs) for certain product types. For instance, exemptions are advised for raw materials that could lead to domestic supply shortages, products that could cause economy-wide disruptions, products unavailable in sufficient quantities or at reasonable prices in the U.S., and products that would encourage economies to fulfill commitments related to forced labor prohibitions.
The Trade Representative has also advised that section 301 tariffs net of Most-Favored Nation (MFN) tariffs would be consistent with agreements on reciprocal trade for goods from the European Union, Japan, Korea, Switzerland, or Taiwan. This measure aims to encourage these economies to fulfill commitments regarding forced labor import prohibitions.
Furthermore, based on received comments and testimony, establishing TRQs on certain textile and apparel goods is deemed appropriate to encourage the importation of U.S. cotton and textiles, reducing reliance on inputs more likely to involve forced labor. Although establishing these TRQs is not feasible immediately, it is expected to be feasible by September 1, 2026.
Additionally, following consultations and the publication of the Notice of Determinations, some economies have imposed forced labor import prohibitions or made commitments in agreements on reciprocal trade, warranting a 10 percent tariff to further encourage the enforcement of these prohibitions. These economies include Cambodia, Guatemala, Honduras, India, Sri Lanka, and Trinidad and Tobago, with Jordan making commitments in a related agreement.
After evaluating these issues and considerations, and weighing the advice from the Trade Representative, along with information and determinations in USTR’s Notice of Determinations, the following directives are issued:
Section 1. Tariffs and Exemptions
(a) Except where specified otherwise, the Trade Representative shall impose the following tariff rates on goods from economies found actionable under section 301:
(i) 10 percent tariff rate: This applies to goods from Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, the United Kingdom, and Trinidad and Tobago.
(ii) Tariff rate of 10 percent or 12.5 percent, net of MFN rate: For products from the European Union or Taiwan, if the MFN tariff is less than 10 percent, a section 301 tariff will be imposed to bring the total tariff to 10 percent. If the MFN tariff is greater than or equal to 10 percent, no additional section 301 tariff will be applied. For products from Japan, Korea, or Switzerland, if their MFN tariff is less than 12.5 percent, a section 301 tariff will be applied to reach a total of 12.5 percent. If the MFN tariff is 12.5 percent or more, no additional section 301 tariff will be applied. This approach aligns with agreements on reciprocal trade, encouraging compliance with forced labor import prohibitions.
(iii) 12.5 percent tariff rate: This applies to goods from all other investigated economies found actionable under section 301.
(b) The Trade Representative shall exempt from these tariffs the products listed in the Annex to this memorandum for each economy, which include:
(i) Raw materials that could lead to domestic supply shortages if subject to tariffs;
(ii) Products that could cause economy-wide disruptions if tariffed;
(iii) Products unavailable in sufficient quantities in the U.S. or from other sources;
(iv) Products for which tariffs may not effectively eliminate the actionable acts, policies, and practices; or
(v) Certain products from Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Jordan, Malaysia, Switzerland, Taiwan, or the United Kingdom that would encourage commitments regarding forced labor import prohibitions.
(c) After assessing relevant factors, I determine the products identified in the Annex should be exempt from tariffs directed in subsection (a). The Trade Representative will modify the Harmonized Tariff Schedule of the United States (HTSUS) accordingly. In my judgment, these tariffs with exemptions are appropriate to eliminate the actionable acts, policies, or practices.
Sec. 2. Tariff-Rate Quotas
(a) When feasible, the Trade Representative shall:
(i) Establish TRQs for Bangladesh, Cambodia, Indonesia, and Malaysia, lasting three years, to encourage importing U.S. textile goods and reduce reliance on forced labor inputs; and
(ii) Structure the TRQs to allow specific textiles and apparel to enter the U.S. free of section 301 tariffs based on each economy’s U.S. input importation.
(b) When feasible, the Trade Representative shall:
(i) Establish TRQs for Bangladesh, Cambodia, Indonesia, and Malaysia, lasting three years, to encourage importing U.S. cotton and reduce reliance on forced labor inputs; and
(ii) Structure the TRQs to allow specific textile and apparel, based on each economy’s U.S. cotton importation, to enter the U.S. free of section 301 tariffs.
(c) Until these TRQs are established, the Trade Representative shall impose applicable section 301 tariffs (10 percent) on imports of specific textiles and apparel from Bangladesh, Cambodia, Indonesia, and Malaysia covered by the TRQs.
(d) The Trade Representative will adjust the HTSUS to implement these directives and publish a notice in the Federal Register regarding the TRQs’ establishment and effective date.
(e) After considering the relevant issues and factors, I determine the actions directed in this section are appropriate and feasible to eliminate the applicable economies’ actionable acts, policies, or practices.
Sec. 3. Additional Explanation
(a) After reviewing relevant issues and factors, I determine that the actions directed in this memorandum are appropriate and feasible to eliminate each economy’s actionable acts, policies, or practices.
(b) In my judgment, the 10 percent tariff on goods from Bangladesh, Cambodia, Indonesia, and Malaysia, with exemptions and TRQs as discussed, is appropriate to eliminate the actionable acts, policies, or practices of these economies.
(c) I believe the tariffs on goods from each economy found actionable under section 301, with exemptions, are appropriate to eliminate the actionable acts, policies, or practices.
(d) I have considered alternatives, such as lower tariff rates, additional or fewer exemptions, omitting TRQs, and negotiations without tariffs. After review, I find these alternatives less effective than the directed actions for eliminating the actionable acts, policies, or practices.
(e) The Trade Representative may modify or terminate tariffs, exemptions, or TRQs for an economy, as appropriate and subject to specific direction, including under section 307 of the Trade Act of 1974.
Sec. 4. Severability
(a) If any provision of this memorandum or its implementation concerning any section 301 investigation is deemed invalid, the remaining parts and implementation of other investigations will remain unaffected.
(b) This memorandum contains separate directives for 60 separate economies. Each tariff action is distinct and intended solely to eliminate the specific economy’s actionable acts, policies, or practices. The invalidity of one tariff action does not affect other implemented tariffs.
(c) If any tariff action in this memorandum is deemed invalid, only that tariff shall be treated as invalid. Other implemented tariff actions will continue to apply.
(d) This section reflects my determination that each implemented tariff action, with or without exemptions, should remain operative to eliminate the specific economy’s actionable acts, policies, or practices. Each tariff action is feasible and appropriate for this purpose.
(e) This section also reflects my intent that each tariff action at the rates in section 1(a) remains operative, and exemptions in section 1(b) remain operative to the maximum extent consistent with law. If any exemption is held invalid, only that exemption should be treated as invalid, and the applicable tariff action should apply to imports previously covered by the invalidated exemption.
Sec. 5. General Provisions
(a) This memorandum does not impair or otherwise affect:
(i) The authority granted by law to an executive department or agency, or the head thereof;
(ii) The functions of the Director of the Office of Management and Budget regarding budgetary, administrative, or legislative proposals.
(b) This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This memorandum does not create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
Sec. 6. Publication
The Trade Representative is authorized and directed to publish this memorandum in the Federal Register.
ANNEX
DONALD J. TRUMP
