In the 80 days since the Supreme Court overturned one set of tariffs, fashion brands have been stuck somewhere between hoping for refunds and getting ready for whatever comes next. And what comes next, it seems, is more tariffs — possibly within the next couple of months. This time, they’ll be tied to forced labor.

“There have always been discussions about banning products made with forced labor; that’s fine,” says Gail Strickler, president for global trade at consultancy Brookfield Associates and a former assistant US trade representative for textiles. But this time, the ban wouldn’t just apply to goods entering the United States. “If you’re a major brand or retailer tracing your cotton from a factory in Bangladesh and making sure it’s not Uyghur cotton, that doesn’t matter. What they’re saying is, we’re going to look at all of Bangladesh to see if the country is enforcing a ban on Uyghur cotton.”

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As part of a new investigation into how well US trading partners are keeping forced labor out of their supply chains, the Office of the United States Trade Representative (USTR) is currently deciding whether it can impose Section 301 tariffs on countries that aren’t doing a good enough job. President Trump had previously imposed Section 301 reciprocal tariffs under the outdated International Emergency Economic Powers Act (IEEPA), which the Supreme Court ruled in February he couldn’t use. Now, forced labor is the new approach he’s taking to bring back the earlier tariffs.

The temporary Section 122 10% tariffs, which the Supreme Court upheld, are set to expire on July 24, and it’s unlikely there will be a gap before the next round. “I expect we’ll see these new tariffs announced by July 24, maybe even sooner,” says Julia K. Hughes, president of the United States Fashion Industry Association (USFIA).

There are 60 countries on Trump’s latest target list — covering all of fashion’s key producers, including Bangladesh, China, and Vietnam, and accounting for more than 99% of US imports. It’s “the broadest tariff trigger ever used under Section 301,” Strickler says, and it could lead to blanket tariffs on imports from countries deemed non-compliant. Textiles and apparel are at the highest risk.

A demonstrator outside the US Supreme Court in Washington in 2025.
Photo: Getty Images

If any workers making clothing, accessories, or raw materials are forced to work against their will, or can’t leave freely due to threats, debt, withheld wages, or confiscated documents, that’s considered forced labor. While many brands still struggle to identify their tier 3 suppliers, this new ruling would mean that for everything that goes into their clothing, they’d need to be sure their supplier country — and their supplier’s supplier country — can guarantee that nothing they’re using is made with forced labor.

It’s complicated in a way that seems designed to make sure the tariffs go into effect. According to Strickler, this new tariff angle gives the president a different way to achieve “whatever he wants to do on tariffs with any specific country.”

A misguided solution

While most in fashion agree on the goal of eliminating forced labor, Hughes says tariffs aren’t the right fix.

When Uzbekistan was found to have forced labor in its supply chain, fashion’s response was direct and effective. The Cotton Campaign’s 2010 Uzbek Cotton Pledge got more than 300 companies to boycott cotton from the country. NGOs, human rights groups, and labor advocates added pressure, making Uzbekistan’s problem both a reputational and economic issue. The country responded with labor reforms and better traceability, and was able to recover some of its lost business.

Tariffs are too indirect to work the same way, Hughes says. Forced labor risk is often buried deep in the supply chain, while tariffs hit the import transaction at the border.Imposing tariffs doesn’t automatically break ties with questionable supply chains or require full traceability. For punitive duties to actually work, the economic pressure has to be greater than the cost of changing labor practices.

The tariff might be high enough to drive change, but whether it truly tackles forced labor is still uncertain. Either way, the fashion industry will take a hit. These new tariffs are meant to replace the earlier Section 301 reciprocal tariff and could go as high as 25%, depending on the country. Looking at Europe, where forced labor standards are often stricter than in the U.S., a big question, according to Hughes, is whether the EU will be affected.

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“It’s hard to predict what will happen,” Hughes adds. “I’d expect different tariffs for different countries, since some are being targeted more than others.”

As if fashion didn’t already have enough to worry about, there’s another Section 301 investigation underway at the USTR, with hearings that just wrapped up on Friday. This one looks at whether certain countries are producing so much that it’s hurting U.S. commerce. Again, Bangladesh, China, Vietnam, India, and others are in the spotlight. If the U.S. decides these countries’ practices are “unreasonable,” according to the USTR, that could mean a separate tariff on top of the forced labor one. Combined, these two investigations are expected to result in at least the same tariff rate as the reciprocal 301, and “maybe higher,” says Hughes.

At the end of April, the USTR also released its annual Special 301 Report, which examines global intellectual property protection. In it, Vietnam was named as a target for a possible case over IP violations. The U.S. is “increasing pressure on Vietnam,” says Hughes, adding that this could be another way for the administration to raise tariffs on the second-largest supplier of clothing to the U.S.

“They’re looking for every possible way to have the threat of tariffs,” says Hughes. “We really have no idea where this is heading.”

Frequently Asked Questions
Here is a list of FAQs addressing the use of new tariffs to combat forced labor written in a natural tone with clear direct answers

BeginnerLevel Questions

Q What exactly is a forced labor tariff
A Its a special tax or fee placed on goods imported from a specific country or company when there is evidence those goods were made using forced or prison labor The goal is to make those products more expensive and less attractive to buyers

Q Why would tariffs help stop forced labor
A The idea is to hit companies where it hurts their profits If it costs more to sell goods made with forced labor companies have a financial incentive to clean up their supply chains to avoid the tariff

Q Who decides which countries or products get these tariffs
A Usually a government agencylike the US Customs and Border Protection or the Department of Laborinvestigates and makes the decision based on reports evidence and trade laws

Q Wont this just make prices go up for everyone
A Yes it can The tariff raises the cost of importing those goods That cost is often passed on to consumers The hope is that the longterm benefit outweighs the shortterm price increase

Q Is this a new idea
A Not completely Countries have used trade restrictions for human rights reasons before But using tariffs specifically as a tool to target forced labor in supply chains has become a more prominent policy in recent years

Advanced Deeper Questions

Q If a company stops importing from a factory with forced labor doesnt that just push the problem somewhere else
A Thats a major risk The factory might still operate just selling to a different country without tariffs Critics argue tariffs can simply displace forced labor rather than eliminate it To truly work tariffs need to be part of a broader strategy that includes international cooperation and support for workers

Q How do you actually prove a product was made with forced labor