US opens forced labor trade probe into 60 countries
Synopsis
The US has begun trade investigations into 60 countries over alleged failures to curb forced labor in supply chains, potentially paving the way for new trade actions.
The United States has launched trade investigations into 60 countries over alleged failures to prevent forced labor in supply chains, the Office of the US Trade Representative said. The probes under Section 301 of the Trade Act could lead to new trade measures as the Trump administration seeks to rebuild tariff pressure after a court ruling invalidated its earlier global tariffs.
Key highlights
- US launches Section 301 investigations into 60 economies
- Probe focuses on failure to curb forced labor in supply chains
- Countries under scrutiny include India, EU, UK, Canada and China
- Move comes after Supreme Court struck down Trump’s global tariffs
- USTR aims to complete investigations before temporary tariffs expire in July
Section 301 probes target forced labor practices
The Office of the US Trade Representative (USTR) said late Thursday it had begun Section 301 investigations into 60 economies to determine whether foreign governments have taken sufficient steps to prohibit goods produced with forced labor.
The investigations will assess how the failure to address forced labor practices affects US workers, businesses and global supply chains, USTR Jamieson Greer said in a statement.
“These investigations will determine whether foreign governments have taken sufficient steps to prohibit the importation of goods produced with forced labor,” Greer said.
Major US trading partners included in probe
The list of countries under investigation includes several major US trading partners and allies.
Among them are Australia, Canada, the European Union, Britain, India, Israel, Qatar and Saudi Arabia, as well as China and Russia.
The probe could eventually lead to trade penalties or tariffs if the US determines that countries have not taken adequate action to curb forced labor in supply chains.
Trump administration seeks new trade pressure
The investigations come as President Donald Trump’s administration attempts to rebuild trade pressure on global partners after the US Supreme Court struck down the administration’s global tariffs on February 20, ruling them illegal.
Following the ruling, the administration imposed a temporary 10% tariff for 150 days under Section 122 of the Trade Act of 1974.
The government has also stepped up trade enforcement actions in other areas.
Earlier this week, US officials launched separate trade investigations into excess industrial capacity in 16 major trading partners, part of broader efforts to address what Washington views as unfair trade practices.
Focus on forced labor in global supply chains
The United States has already taken steps to restrict imports tied to forced labor.
Under the Uyghur Forced Labor Prevention Act, signed into law by former President Joe Biden, the US banned imports linked to forced labor in China’s Xinjiang region, including certain solar panels and other products.
US officials have alleged that Chinese authorities operate labor camps for ethnic Uyghurs and other Muslim minorities in the region.
China has denied the allegations and rejected claims of human rights abuses.
Greer said the new investigations aim to encourage other countries to enforce similar bans on forced-labor goods, in line with longstanding US trade laws.
What happens next
The USTR said it aims to complete the Section 301 investigations and determine possible trade remedies before the temporary tariffs introduced by the Trump administration expire in July.
The outcome could determine whether the United States imposes additional trade restrictions or tariffs tied to forced labor concerns in global supply chains.
FAQs
Q1: What is the US forced labor trade probe about?
The United States has launched Section 301 investigations into 60 countries to determine whether they have taken adequate steps to prevent forced labor in supply chains.
Q2: Which countries are included in the investigation?
The list includes India, China, Russia, the European Union, Canada, Britain, Australia, Israel, Qatar and Saudi Arabia, among others.
Q3: Why did the US launch these investigations now?
The move comes after the US Supreme Court struck down global tariffs imposed by the Trump administration, prompting officials to pursue new trade enforcement measures.
Q4: Could the investigations lead to tariffs?
Yes. If the US determines that countries have failed to address forced labor concerns, it could impose trade penalties or tariffs as a remedy.
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