USTR Launches Section 301 Probe Targeting Forced Labor

The probe follows the February 2026 Supreme Court decision that struck down the administration’s global tariffs under a national-emergency declaration. Officials then turned to Trade Act of 1974’s Section 301 provision as an avenue to re-apply trade pressure and frame the effort as a human-rights campaign.

WWD

The investigation targets textile and apparel hubs—China, Russia, Bangladesh, Cambodia, India, Indonesia, Vietnam, Pakistan, Sri Lanka, Thailand, Turkey and Mexico—and allies Australia, Canada, EU, United Kingdom, Israel, Qatar and Saudi Arabia. Flagged sectors include Xinjiang-origin solar-panel components, cotton and seafood. United States bans Xinjiang cotton and polysilicon under the Uyghur Forced Labor Prevention Act.

Reuters

USTR ambassador Jamieson Greer told Congress the agency aims to finish reviews by July, before a 10 % China tariff expires. Coalition for a Prosperous America urged pairing duties with “quantitative import-management tools” like licensing, and Consumer Technology Association said forced-labor goods must be shown to enter the U.S. market.

Reuters

CTA warned tariffs must show harm to U.S. commerce. Nate Herman of American Apparel and Footwear Association said duties would be counterproductive and harmful to U.S. commerce. Critics view probe as a pretext for broader tariff aims rather than a pure human-rights effort.

WWD

Stakeholders dispute whether Section 301 can address forced-labor violations. Samir Goswami noted EU’s Forced Labour Regulation, stronger than UK’s Modern Slavery Act, won’t be effective until 2027, leaving gap in bans. Critics say without link between foreign forced-labor practices and U.S. market distortion, Section 301 lacks statutory basis for punitive duties.

WWD

The outcome will shape U.S. trade leverage, affect supply-chain costs and influence global labor-rights standards.

WWD

• “Forced labor operates as a hidden production subsidy,” — Mihir Torsekar, CPA senior economist

Reuters

• “The relevant question is whether forced-labor goods enter the U.S. market, not whether they enter foreign markets,” — Ed Brzytwa, CTA vice-president

Reuters

• “’s Modern Slavery Act requires companies to report on their efforts but it doesn’t explicitly prohibit the importation of goods made with forced labor.” — Samir Goswami, Global Rights Compliance

WWD

• “would be counterproductive, legally unwarranted, and harmful to the very U.S. commerce that Section 301 is designed to protect,” — Nate Herman, JFLWG executive vice-president

WWD

USTR aims to finish Section 301 reviews by July and may issue tariffs before the 10 % China duty expires in August. Hearings on excess industrial capacity are scheduled for the next week.

Reuters