Trump Revives Tariff Agenda Through Forced-Labor Trade Probe

President Donald Trump is moving to rebuild a broad tariff regime that has long been central to his trade agenda, this time through a more structured legal process designed to withstand judicial scrutiny and provide a more durable foundation for future import restrictions.

In a proposal unveiled by the Office of the United States Trade Representative (USTR), the administration is considering additional tariffs ranging from 10% to 12.5% on imports from approximately 60 economies following a months-long investigation into whether U.S. trading partners are doing enough to prevent goods produced with forced labor from entering their markets.

The initiative represents the latest effort by the Trump administration to restore a powerful trade policy tool after several previous tariff measures faced legal setbacks in U.S. courts.

According to the USTR, the investigation concluded that a number of foreign economies maintain policies and practices that fail to adequately prevent the importation of goods linked to forced labor, creating what Washington describes as an uneven competitive environment for American manufacturers and workers.

U.S. Trade Representative Jamieson Greer said in a statement that the inability or unwillingness of several major trading partners to address forced-labor-related imports is “unacceptable,” arguing that it forces American workers to compete under unfair conditions.

Under the proposal, countries that have already implemented bans on forced-labor products, or have committed to enforcing such restrictions, would face an additional 10% tariff on exports to the United States.

This category reportedly includes entities such as the European Union, along with countries including Canada, Mexico, Indonesia, Pakistan and Ecuador.

Meanwhile, economies deemed to have taken insufficient action, including China, India, Japan, Brazil, Australia and South Korea, could face tariffs of 12.5%.

The proposed measures have not yet entered into force and remain subject to public consultation and statutory review procedures under U.S. trade law.

The USTR has set July 6, 2026, as the deadline for written submissions on the proposal and plans to hold public hearings beginning on July 7.

The proposal also includes exemptions for selected products and a special mechanism for textile and apparel imports that could allow limited quantities to enter the U.S. market under reduced tariff rates.

The administration’s reliance on a formal investigative process reflects a clear shift from the rapid tariff announcements that characterized earlier phases of Trump’s trade policy and were later challenged in court.

The new strategy follows a series of legal defeats that limited the administration’s ability to impose broad-based tariffs using emergency authorities.

After a U.S. court ruling earlier this year restricted the use of emergency powers for comprehensive import duties, the administration briefly turned to Section 122 of the Trade Act of 1974 to impose a temporary 10% global tariff.

However, that approach also faced legal obstacles after trade courts questioned whether the statutory requirements for invoking the provision had been met.

Attention has since shifted to Section 301 of the Trade Act of 1974, a more established mechanism that allows the USTR to investigate foreign trade practices and impose retaliatory measures when those practices are deemed harmful to U.S. economic interests.

Trump previously relied on Section 301 during his first term to impose sweeping tariffs on Chinese imports and selected European goods, triggering years of trade disputes and supply-chain adjustments.

Unlike Section 122, Section 301 does not impose a fixed time limit on resulting tariffs, making it a potentially more effective vehicle for creating a long-term tariff framework.

The proposal threatens to reignite trade tensions between the United States and several of its largest economic partners at a time when global markets remain sensitive to inflation risks, supply-chain disruptions and slowing economic growth.

Businesses and investors are closely monitoring the initiative for its potential impact on import costs, international commerce and global manufacturing networks.

The move also places U.S. trading partners before a difficult choice: strengthen restrictions on goods linked to forced labor or risk facing higher barriers to the American market.

At the same time, the USTR is conducting additional investigations into what Washington describes as excess industrial capacity among certain trading partners, raising the possibility of further tariff actions in the months ahead.