The United States (US) has proposed imposing additional tariffs on imports from Bangladesh and dozens of other economies, citing inadequate measures to prevent trade in goods produced through forced labour.
According to a report by UNB, the Office of the United States Trade Representative (USTR) announced on Tuesday that it had determined under Section 301 of the Trade Act of 1974 that the policies and practices of 60 economies regarding the importation of goods made with forced labour are unreasonable and burden or restrict US commerce.
The USTR said it had prepared a detailed report titled Acts, Policies, and Practices of Various Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor, which formed the basis of its findings.
US Trade Representative Ambassador Jamieson Greer said the failure of major trading partners to address imports linked to forced labour was unacceptable and created an uneven competitive environment for American workers.
“We will no longer tolerate this disparity,” Greer said, adding that while some trading partners have taken initial steps through trade agreements and other commitments, more action is needed to ensure trade does not encourage or sustain forced labour globally.
As part of the process, interested parties have until 22 June 2026 to submit requests to testify and provide summaries of their statements. Written comments must be submitted by 6 July 2026. USTR will hold public hearings on the proposed measures on 7 July 2026.
Following its findings, the USTR has proposed additional duties on products from the investigated economies, subject to certain exemptions outlined in an annex to the Federal Register notice.
For economies that already impose a forced labour import ban, have committed to introducing and enforcing such measures through an Agreement on Reciprocal Trade, or maintain a partial system that blocks certain forced labour goods, the proposed additional tariff rate is 10 per cent.
For all other economies, the proposed additional duty is 12.5 per cent.
The USTR also proposed a special textile mechanism that would allow a specified volume of apparel and textile imports from certain economies to enter the US market at a reduced Section 301 tariff rate.
The agency launched the investigations on 12 March 2026 under Section 301 of the Trade Act, which authorises action against foreign government policies or practices deemed unjustifiable, unreasonable or discriminatory and harmful to US commerce.
Under Section 302(b) of the Act, the Trade Representative may initiate such investigations independently.
The USTR said it received testimony from nearly 60 witnesses and reviewed around 500 comments and rebuttal submissions during the investigation process.
Bangladesh is among 54 economies that, according to the USTR, have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.
The remaining six economies — Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan — were found to have failed to effectively enforce existing prohibitions.
The USTR concluded that all 60 investigated economies had failed either to establish or effectively enforce measures against imports linked to forced labour.
According to the findings, such failures undermine global efforts to eliminate forced labour, distort market competition by allowing lower-cost production, reduce the profitability of businesses that do not rely on forced labour and contribute to the circumvention of existing import restrictions.
The USTR further said these practices burden US commerce by exposing American producers to unfair competition in both domestic and international markets and by facilitating the entry of goods linked to forced labour into global supply chains.
