backOn March 12, 2026, the United States Trade Representative (“USTR”) issued a press release (and advance Federal Register notice) announcing the initiation of investigations under Section 301 of the Trade Act of 1974, as amended (“Section 301”), concerning 59 countries and the European Union (“EU”) related to “the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.”
The investigations will determine whether the identified economies’ failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor are unreasonable or discriminatory and burden or restrict U.S. commerce.
As with the Section 301 investigations relating to excess capacity initiated on March 12, 2026, these investigations are expected to provide a more durable U.S. statutory basis for reimposing tariffs. Specifically, the findings could allow the Administration to reestablish the scope and level of the tariffs under the International Emergency Economic Powers Act of 1977 (“IEEPA”), as well as corresponding bilateral agreements, that existed prior to the Supreme Court decision striking down the IEEPA tariffs. Section 301 investigations are also expected to restore leverage for the President to adjust the remedies as needed to address policy objectives.
USTR, however, has the opportunity under the Section 301 actions to adjust the scope and level of the tariffs that had been in place in the IEEPA regime in order to better align with prevailing trade, economic, and national security priorities. The Section 301 investigations also provide an opportunity for the Administration to address issues that may be creating unnecessary costs to new and expanding U.S. manufacturing investments.
Written comments (and requests to appear at the hearing) are due by April 15, 2026, and a public hearing will be held from April 28 to May 1, 2026, with rebuttal comments due seven days after the final day of hearing.
The Economies Under Investigation
In its Notice of Institution (“NOI”), USTR listed the EU and 59 countries subject to investigation.
Failure To Prevent Trade In Products Produced With Forced Labor Affecting U.S. Commerce
According to NOI, despite a broad international consensus condemning forced labor, the practice persists globally. In fact, data from the International Labor Organization (“ILO”) show that its prevalence has increased in recent years. The NOI further notes that forced labor taints entire supply chains, which USTR illustrates by reference to the U.S. Department of Labor’s 2024 List of Goods Produced by Child Labor or Forced Labor (“TVPRA List”). That report identifies 134 products made with forced labor across various countries, along with 34 downstream goods produced using forced-labor inputs. These inputs include cotton in garments, textiles, thread, and yarn; critical minerals in solar products and auto parts; fish in fish oil and fish meal; and palm fruit in cooking oils and biofuels.
The NOI emphasizes that, although the United States has prohibited imports of goods produced with forced labor for nearly a century, many foreign economies have failed to enact or enforce comparable restrictions. This insufficient enforcement enables foreign firms artificially to reduce labor costs and generate an estimated $63.9 billion in annual profits.
The failure to prevent trade in products made with forced labor may adversely affect U.S. commerce because U.S. companies must compete against products made wholly or in part with forced labor, including products that have been denied entry to the U.S. market and subsequently reexported elsewhere. As a result, U.S. companies may lose sales or revenues or even be displaced from the marketplace entirely.
Public Comments
The USTR docket for public comments will open on March 18, 2026. USTR encourages stakeholders, including industry participants, trade associations, and other interested parties to provide detailed written comments addressing the Section 301 investigation’s scope, evidence of harm, and suggestions of tariff and non-tariff actions. In particular, USTR is inviting comments on the following topics:
- Whether any economy subject to these investigations maintains or is in the process of establishing a forced labor import prohibition, and whether any such import prohibition is being effectively enforced.
- The extent to which the failure of any economy to establish and effectively enforce a forced labor import prohibition is unreasonable, discriminates against U.S. goods, or constitutes a persistent pattern of conduct that permits any form of forced or compulsory labor.
- The extent to which the failure of any economy to establish and effectively enforce a forced labor import prohibition has negatively affected U.S. commerce, such as through lost U.S. exports or economic output, lower prices for U.S. goods, or lower wages for U.S. workers.
- What action, if any, should be taken to address these issues, including:
- The level and scope, if any, of duties on products of any economy subject to these investigations.
- The level and scope, if any, of import restrictions on products of any economy subject to these investigations.
- The appropriate aggregate level of trade to be covered by any additional duties on products of any economy subject to these investigations.
Key Takeaways
These Section 301 investigations are another example of a more aggressive use of this tool than we have seen in recent years, targeting a broad range of economies and manufacturing sectors simultaneously. If USTR determines that the acts, policies, and practices under investigation are actionable, the Administration could impose tariffs or other trade measures on products from any or all of the 59 countries and the Member States of the European Union.
As a reminder, courts have largely upheld the use of Section 301, including in litigation challenging the China investigation conducted during the first Trump Administration. Judicial review in these cases focus on compliance with the Administrative Procedure Act and whether USTR followed the procedural requirements outlined in the statute. The extent to which the Administration solicits and considers public input will likely influence its exposure to litigation risk in any future court challenge. This consideration is particularly salient here, given the expansive scope of the announced Section 301 investigations.
Industry participants with supply chains or trade relationships involving the identified economies and sectors should carefully evaluate how potential trade measures may impact their operations and strategic plans. Stakeholders are advised actively to engage in the public comment and hearing processes to ensure their interests are represented.
Our team is closely monitoring Section 301 investigations and has extensive experience advising clients on trade policy matters. If you have any questions or would like to discuss written comments, hearing participation, and developing strategic responses to potential trade actions related to this investigation, please contact us.