US imposes tariffs on dozens of trade partners over 'forced labour' imports
The United States imposed additional tariffs of 10% to 12.5% on imports from about 60 trading partners, effective July 24, 2026, following a finding that these economies had not adequately prohibited or enforced a ban on imports made with forced labour
The differentiated rate structure applied a 10% tariff to economies found to have adopted a forced-labour import prohibition, and 12.5% to economies without any such prohibition
The covered economies together account for an estimated 99.4% of total US trade, making the action one of the broadest tariff measures applied in a single determination
The action was carried out under a domestic US trade-remedy statute rather than through a multilateral dispute-settlement process
Trade Remedy Instruments Under the WTO Framework
The multilateral trading system recognises specific, narrowly defined "trade remedies" that WTO members may use to counter unfair or injurious trade: anti-dumping duties (against under-priced exports, governed by GATT Article VI and the Anti-Dumping Agreement), countervailing duties (against foreign government subsidies, governed by the SCM Agreement), and safeguard measures (temporary, non-discriminatory protection against import surges, governed by GATT Article XIX and the Agreement on Safeguards). A unilateral, country-specific tariff imposed outside these categories — such as a domestic "unfair trade practice" statute — does not fit any of the WTO's recognised remedy categories.
Key Details
- Anti-dumping duties require proof of a "dumping margin" (export price below normal value) plus injury to domestic industry
- Countervailing duties require proof of an actionable subsidy plus injury
- Safeguard measures under GATT Article XIX require serious injury or threat thereof from an import surge, must generally be applied on a most-favoured-nation (MFN) basis, and do not require any finding of unfair conduct
- All three remedies require a formal investigation by the importing country's competent authority before duties are imposed
The forced-labour tariffs are not anti-dumping, countervailing, or safeguard duties in the WTO sense — they were imposed under a unilateral US statute (Section 301 of the Trade Act, 1974) based on a finding of inadequate labour-standard enforcement, a category the WTO's trade-remedy rulebook does not explicitly cover, illustrating the gap between domestic trade-remedy statutes and multilateral trade law.
ILO Forced Labour Convention, 1930 (No. 29) and Its 2014 Protocol
The Forced Labour Convention (No. 29), adopted by the International Labour Organization in 1930, is one of the ILO's foundational instruments and defines forced labour as "all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily." It remains the global reference definition used by national governments — including the US and India — when framing import bans on forced-labour-made goods. The 2014 Protocol to the Convention updated the instrument to address modern forms of forced labour, including in global supply chains, and requires states to take effective measures of prevention, protection, and remedy.
Key Details
- Convention No. 29 (1930) is one of the ILO's eight "fundamental" conventions
- The Abolition of Forced Labour Convention, 1957 (No. 105) supplements it by prohibiting forced labour as a means of political coercion or punishment
- The 2014 Protocol strengthens obligations on prevention, victim protection, and supply-chain due diligence; it entered into force in 2016
- Definitions used by national forced-labour import bans (including the US and India) are typically anchored to the Convention No. 29 definition
The US determination assessed whether each of the 60 economies had domestically enacted and enforced an import prohibition consistent with the internationally accepted (ILO-derived) definition of forced labour — the presence or absence of such a domestic ban was the dividing line between the 10% and 12.5% tariff tiers.
Comparative Regulatory Approaches: US Unilateral Tariffs vs the EU Forced Labour Regulation
Beyond the US action, the European Union has adopted its own forced-labour trade instrument — Regulation (EU) 2024/3015, which entered into force in December 2024 and becomes applicable from December 2027. Unlike the US approach of tariff surcharges tied to a country's own enforcement record, the EU regulation is a market-access ban: it prohibits placing, selling, or exporting any product made with forced labour on or from the EU market, regardless of the exporting country's own laws, and requires importing companies to conduct human-rights due diligence.
Key Details
- EU Regulation 2024/3015: general prohibition on forced-labour-made products, applicable EU-wide from December 2027
- Applies extraterritorially — non-EU companies supplying the EU market fall within scope
- Contrasts with the US Tariff Act of 1930, Section 307, which similarly bars imports made wholly or partly with forced or convict labour, but through a customs seizure/exclusion mechanism rather than a blanket market ban
- The July 2026 Section 301 tariffs add a third layer — using tariff differentiation, rather than an outright import ban, as the enforcement lever against countries (not just specific goods)
The 60-economy tariff action shows the US using trade policy (tariff differentiation by country) to pressure enforcement, a materially different regulatory design from the EU's product-level import ban, reflecting two competing global models for policing forced labour in supply chains.
- Tariff rates applied: 10% (economies with a forced-labour import prohibition) or 12.5% (economies without one)
- Effective date: July 24, 2026
- Number of economies covered: approximately 60, representing an estimated 99.4% of total US trade
- Legal basis: Section 301, Trade Act of 1974 (Title III, "Relief from Unfair Trade Practices")
- ILO Forced Labour Convention: adopted 1930 (No. 29); Protocol adopted 2014, in force 2016
- EU Forced Labour Regulation: entered into force December 2024, applicable from December 2027