US Launches Trade Probes into Forced Labor

The U.S. has launched new trade investigations under Section 301 of the Trade Act of 1974 into 60 economies, including major trading partners such as China, Canada, Mexico, Japan, South Korea, Vietnam, Australia, the UK, and the European Union. The probe, announced on March 12 by U.S. Trade Representative Jamieson Greer, aims to determine whether these countries have taken sufficient steps to prohibit imports of goods produced with forced labor.

Greer emphasized that these investigations aim to protect American jobs and address unfair trade practices impacting U.S. workers and businesses. The probe will examine whether foreign governments have implemented measures to ban goods produced with forced labor and assess the impact of their failure to eradicate such practices.

The investigation follows the Supreme Court's decision on February 20, which struck down key parts of President Donald Trump's tariff policies. In response, Trump imposed a temporary 10% global tariff, with plans to raise it to 15%. The new probe offers the administration a way to rebuild its case for imposing credible tariff threats against trading partners.

The USTR will hold public hearings starting on April 28 to gather evidence and consult with affected economies. If the probes find against the targeted economies, the USTR has the authority to impose new tariffs or other import restrictions. Greer stated that these investigations are independent of existing trade pacts and aim to ensure fair trade practices.

China and the EU have pushed back against the probes, warning that trade deals reached with Washington over the past year could be jeopardized. China's foreign ministry spokesperson Guo Jiakun stated that the U.S. claim of overcapacity is a 'false proposition' and Beijing opposed 'political manipulation under this pretext'. The USTR cited large US trade surpluses in Germany and Ireland as evidence of EU excess capacity, Singapore's excess global capacity in semiconductors despite a trade deficit with the US, and Norway's excess capacity evidenced by large fuel and seafood exports.

The probes come as Trump officials prepare to meet Chinese counterparts to set the stage for future diplomatic discussions. The Supreme Court decision effectively reduced U.S. leverage on China trade and export controls by cutting Trump’s tariffs on Chinese goods by 10 percentage points. Greer expects other similar investigations 'on a country-specific basis' to follow.

Congressional Democrats have warned that President Donald Trump's tariffs will cost American households an average of $2,512 in 2026, up 44% from $1,745 in tariff costs last year. They argue that the administration’s import taxes will push prices even higher at a time when U.S. consumers are already struggling with high living costs and rising energy prices due to the war with Iran.

Despite these concerns, White House spokesman Kush Desai dismissed the Democrats' study as 'phony,' asserting that President Trump will continue using tariffs to renegotiate trade deals, lower drug prices, and secure investments for the American people. The administration has moved quickly to impose new tariffs under Section 122 of the Trade Act of 1974, but these levies can only last 150 days unless Congress agrees to extend them.

The USTR's announcement marks the second Section 301 probe this week, as the Trump administration works to put in place new levies to replace the tariffs struck down by the Supreme Court. The investigations are expected to lead to a more orderly process than the rapidly changing nature of Trump's previous tariff announcements.