US probes 60 economies over forced labor import bans under Section 301
The US Trade Representative (USTR) has launched investigations into 60 economies, including major trading partners like Korea, China, and Japan. These probes will examine whether these countries ban imports made with forced labour. The process, conducted under Section 301 of the 1974 Trade Act, will remain open to public scrutiny.
The move follows a Supreme Court ruling that struck down reciprocal tariffs imposed under the International Emergency Economic Powers Act. After this decision, the Trump administration turned to Section 301 as an alternative route for imposing trade measures.
The USTR will determine if the targeted governments have failed to enforce bans on goods produced with forced labour. Officials will assess whether their policies are 'unreasonable' or 'discriminatory' and whether they unfairly burden US commerce. USTR Jamieson Greer criticised governments for not doing enough to stop such imports. In a separate but related action, the administration opened another trade inquiry into 15 economies, including Korea, China, and Japan. This probe focuses on 'unfair' trade practices linked to excess production capacity. The list of countries under investigation also includes India, Indonesia, Britain, Australia, Canada, and Taiwan.
The findings could lead to new tariffs if the USTR concludes that foreign policies violate trade rules. The public and transparent nature of the process means businesses and governments will closely monitor developments. Any resulting measures would mark another shift in US trade policy under the current administration.
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