U.S. Plans to Impose 10% or 12.5% Tariffs on 60 Economies Citing Forced Labor Investigations
Claire Weston
The U.S. Trade Representative's office announced on June 2 that it plans to impose 10% or 12.5% tariffs on goods from 60 economies, citing their failure to ban forced-labor imports; the proposal still requires a public-comment period, but the signal is clear — tariff tools are expanding from traditional trade disputes into labor-rights territory.
How are the tariffs split?
Under USTR's Section 301 report, Canada, Mexico, Taiwan, the EU, and the UK face 10% tariffs.
China, India, Japan, South Korea, Brazil, and Switzerland face the higher 12.5% rate, for "failing to implement and effectively enforce forced-labor import bans."
This means → Washington is sorting trade partners into two tiers: cooperate more, pay 10%; fall short on enforcement, pay 12.5%. The gap is small, but the tiering itself is the pressure signal.
Where does the "forced labor" rationale come from?
The legal basis is a Section 301 investigation — a U.S. statute that lets Washington unilaterally declare a partner's practices "unfair" and impose tariffs.
The report defines "forced labor" as any work or service extracted under threat of penalty and not offered voluntarily.
In plain terms = the U.S. logic chain runs: your country hasn't banned forced-labor imports → your goods cost less → American workers compete on an uneven field → so we tariff to level it.
What did the U.S. Trade Representative say?
It is unacceptable that our most important trading partners have failed to address the importation of goods made with forced labor. This creates a situation where American workers are forced to compete in an unfair global playing field.
Jamieson Greer
U.S. Trade Representative
(June 2, 2026, official statement)
How did China and India respond?
Chinese Foreign Ministry spokesperson Mao Ning said on June 3 that China firmly opposes all forms of unilateral tariff measures and that trade issues should be resolved through dialogue.
India's Commerce and Industry Ministry said the same day that India remains engaged with the U.S. on the matter as part of the Section 301 process; broader trade-framework talks launched in February are also continuing.
This means → China pushed back clearly but named no specific retaliation; India chose to stay at the table. Two economies in the 12.5% tier, two very different postures.
How far is this from taking effect?
The Wall Street Journal noted that the new tariff proposal still requires a public-comment period — it is not immediate.
In plain terms = the announcement says "we intend to do this," not "collection starts tomorrow." Public review, possible revisions, and a final timeline all lie ahead.
But the signal alone carries weight: 60 economies named at once — a scope far wider than any previous round of Section 301 tariffs.
Content is for reference only, not financial advice.