Washington: The United States Trade Representative has announced its decision to impose tariffs on goods from 60 economies, following investigations into their failure to prohibit or effectively enforce bans on the importation of goods produced with forced labor. This decision was made under Section 301 of the Trade Act of 1974, targeting economies whose acts, policies, and practices were deemed unreasonable and burdensome to U.S. commerce.According to The White House, the Trade Representative determined on June 2, 2026, that the actions of these economies are actionable under Section 301(b)(1). As a result, ad valorem tariffs ranging from 10 to 12.5 percent will be imposed on goods from these economies, with specific exemptions in place for certain products necessary to the U.S. economy or those unlikely to contribute to resolving the identified issues. The economies subject to these tariffs include Argentina, China, the European Union, and India, among others.The proposal includes a 10 percent tariff fo r economies imposing forced labor import prohibitions without effective enforcement, such as Canada and the European Union. For other economies, a 12.5 percent tariff is proposed. Exemptions will apply to raw materials that could become unavailable, products causing economic disruption, and items not producible domestically. Additionally, textile mechanisms will enable certain apparel imports to enter the U.S. tariff-free.Public hearings and over 1,600 written comments were considered in determining these actions. The Trade Representative advised that tariffs aligned with Most-Favored Nation rates will be applied to certain economies to encourage fulfilling commitments on forced labor prohibitions. Further, Tariff-Rate Quotas (TRQs) will be established to incentivize the importation of U.S. cotton and textile goods, though implementation is delayed until September 2026.Following consultations, additional economies, including Cambodia and Sri Lanka, have implemented forced labor prohibitions, warranting a 10 percent tariff to encourage enforcement. The directive outlines the imposition of tariffs and exemptions, TRQs for specific goods, and the intention for these measures to address the actionable practices of the economies involved.The memorandum emphasizes the necessity of these tariffs to eliminate forced labor practices, with the possibility of modifying or terminating tariffs based on ongoing evaluations. The U.S. seeks to maintain the integrity of each tariff action independently, ensuring that any invalidation of a specific tariff does not affect others. The directive aims to uphold U.S. trade and ethical standards by addressing forced labor concerns comprehensively.