The Office of the U.S. Trade Representative heard a second day of testimony on July 8, 2026, in its Section 301 investigation into forced labor, with witnesses divided over proposed tariffs of 10% or 12.5% on imports from 59 countries and the European Union. The two-tier structure would apply a 10% rate to countries with existing prohibitions on forced-labor imports and a 12.5% rate to those without such laws, based on the theory that the former are failing to adequately enforce their regulations.
Several targeted governments questioned the sufficiency of the USTR's evidentiary basis. Kazakhstan's trade-remedies official, Yerkebulan Abdrassil, argued that the country's exports show no meaningful burden on U.S. commerce. India's Commerce Ministry Joint Secretary, Brij Mohan, contended that the investigation departs from previous actions by omitting sector-specific evidence and criticized the credit for apparel made with U.S. inputs as a protectionist measure rather than a labor remedy. Pakistan's Mohammad Channa echoed concerns regarding the lack of specificity.
Additional testimony highlighted regional perspectives: Mexico's Kenneth Smith Ramos (Gomez Lora) and Honduras's Alejandro Fuschich (COHEP) offered further critiques of the proposal's potential impact on regional trade and supply chains.
Business and worker-advocacy witnesses also weighed in. The National Retail Federation's Jonathan Gold, representing the Forced Labor Working Group, warned that the tariffs could function as "a permanent tax" without a defined enforcement standard, and urged the preservation of existing USMCA and CAFTA-DR apparel carve-outs. Martina Vandenberg of the Coalition Against Forced Labor in Trade noted that while she supports import bans, the current action provides no clear pathway for countries to remove tariffs through improved enforcement.
Other witnesses pressed for significantly more aggressive action. China Labor Watch founder Li Qiang recommended a 50% tariff rate on Chinese goods, while Boat People SOS Executive Director Nguyen Thang urged a 35% to 50% rate on Vietnamese electronics, machinery, footwear, agriculture, rubber, and timber, citing systemic domestic labor abuses and the use of imported forced-labor inputs.