Insights

On March 12, 2026, the Office of the U.S. Trade Representative (“USTR”) initiated new investigations pursuant to Section 301 of the Trade Act of 1974 into the acts, policies, and practices of the economies listed in Annex A of its Federal Register Notice (“FRN”) relating to the failure to impose and effectively enforce a prohibition on the importation of goods produced wholly or in part with forced labor. The USTR states that these failures may be unreasonable or discriminatory and may burden or restrict U.S. commerce, thereby potentially warranting action under Section 301. The announcement of the forced labor investigations follows the USTR’s March 11, 2026 announcement of investigations into structural excess capacity and production in manufacturing sectors in 16 foreign economies.

This most recent announcement by the USTR is a notable development because it is using Section 301 not simply to address traditional market-access barriers, but to examine whether foreign governments’ inadequate forced-labor import controls may themselves constitute actionable conduct under the Trade Act of 1974. In addition, the scope of the investigations is notably broad, covering 60 of the largest trading partners with the U.S., including Canada, China, the EU, India, Japan, Mexico, and the UK. The USTR grounds the investigations in Section 301’s authority over foreign acts, policies, and practices that are unreasonable or discriminatory and burden or restrict U.S. commerce and specifically points to the statutory provision recognizing as unreasonable a persistent pattern of conduct that permits forced or compulsory labor.

Depending on the outcome of the forced labor investigations, new trade measures, including tariffs, may be imposed on products imported from the countries identified in Annex A of the FRN. Importantly, interested parties will have an opportunity to submit written comments for consideration by the USTR in its investigations. The USTR is expressly requesting public comments on several key topics – whether the economies under investigation maintain, or are establishing, prohibitions on imports made with forced labor and whether those prohibitions are effectively enforced; whether any failure to adopt or enforce such measures is unreasonable, discriminatory, or reflects a persistent pattern of permitting forced labor; how those failures affect U.S. commerce, including U.S. exports, output, prices, and wages; what responsive action, if any, the USTR should take, including the scope and level of duties or other import restrictions; and the aggregate level of trade that any additional duties should cover.

The procedural timeline is moving quickly. Written comments, requests to appear at the public hearing, and summaries of testimony must be submitted to the USTR by April 15, 2026. Public hearings before the Section 301 Committee are scheduled to begin on April 28, 2026 at the U.S. International Trade Commission and may continue through May 1, 2026 if necessary. 

For companies, the investigations underscore the growing convergence of forced-labor compliance, supply-chain due diligence, and trade-remedy risk. Businesses with sourcing, manufacturing, or sales exposure involving the economies under investigation should consider whether to participate in the comment process, either directly or through industry groups as these investigations may ultimately create additional tariff or import-restriction exposure.

***

The attorneys at Torres Trade Law continue to monitor the new Section 301 investigations for developments related to the potential implementation of additional tariff actions and other trade restrictions. If you have questions about the Section 301 investigations or would like assistance with preparation of public comments, please feel free to contact the attorneys at Torres Trade Law.