USTR proposes Section 301 tariffs of 10% or 12.5% on 60 economies for failure to enforce forced labor import bans: On 2 June, USTR published findings in the Section 301 forced labor investigations initiated in March 2026, determining that all 60 investigated economies have failed to impose or effectively enforce a prohibition on imports of goods produced with forced labor. USTR proposed additional tariffs as follows:
10% on imports from Argentina, Bangladesh, Canada, Cambodia, EU, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia, Mexico, Pakistan, Taiwan, and the UK
12.5% on imports from the remaining 46 countries, noted below, with deficient policies combatting imports of goods produced with forced labor.
Proposed tariff actions includes a list of exemptions in Annex A, however, food processing and packaging machinery of 8422 and 8438 are not in scope of the exemptions. Other exempted products include USMCA compliant imports from Canada and Mexico, and products subject to Section 232 steel/aluminum tariffs. USTR is accepting public comments on the proposed tariff action until 6 July, which can be submitted here.
Please note that the proposed forced labor Section 301 tariffs would stack on top of standard/MFN tariffs and the other anticipated Section 301 tariff actions, which includes 25% tariffs from the Section 301 Brazil investigation and the anticipated tariff action from the Section 301 structural excess capacity investigation.
USTR proposes 25% Section 301 tariff on Brazilian goods: On 1 June, USTR published proposed 25% tariff action on imports from Brazil as part of the Section 301 investigation on Brazil’s unreasonable acts, policies, and practices. Under the proposed tariff action, imports exempted include parts/components which are subject to Section 232 steel/aluminum tariffs and packing or wrapping machinery of 8422.40.9181. All other machinery of Brazilian origin would be subject to the 25% tariff. USTR is accepting public comments on the proposed tariff action until 1 July, which can be submitted here.
Please note that the proposed 25% Brazil Section 301 tariff would stack on top of standard/MFN tariffs and the other anticipated Section 301 tariff actions, which includes 12.5% tariffs from the Section 301 forced labor investigation and the anticipated tariff action from the Section 301 structural excess capacity investigation.
Additional modifications to Section 232 steel/aluminum tariffs: Effective 8 June, the Trump Administration implemented temporary reduced Section 232 tariffs for certain industrial and agricultural equipment until December 2027. Imports of food processing and packaging machinery of 8422 and 8438 continue to not be in scope of Section 232 steel/aluminum tariffs.
USMCA joint review process expected to continue past the required 1 July deadline: News reporting indicates that the US, Canada, and Mexico understand negotiations are likely to not conclude by the 1 July agreement renewal deadline required under USMCA. This will kick off a 10-year process in which the agreement will remain in force and the US, Canada, and Mexico have until 2036 to continue negotiations and work towards renewing the agreement.
