USTR Updates: U.S.–China Trade Board & Forced-Labor Goods Tariffs

Trade Update • June 3, 2026

Key Points

• USTR is requesting public comments on the design of a U.S.-China Board of Trade, a government-to-government mechanism to manage reciprocal tariff modifications on non-sensitive goods. Comments due July 10, 2026.
• Separately, USTR has determined all 60 investigated economies have failed to adequately prohibit imports of goods produced with forced labor, and is proposing Section 301 additional duties as a result.
• Proposed duty rates are 10% for economies that have a forced labor import prohibition or have made commitments through a Reciprocal Trade Agreement, and 12.5% for all others.
• A textile mechanism is also proposed that would allow reduced-rate imports tied to the volume of U.S. textile exports to a given trading partner. Written comments on the forced labor action are due July 6, 2026; public hearings begin July 7, 2026.
• Both actions are open for public comment via USTR’s electronic portal at comments.ustr.gov.

O​​​​​​​​​​​​​​​​​​​​he Office of the U.S. Trade Representative (USTR) is seeking public input to design the U.S.-China Board of Trade, which aims to support managed trade through reciprocal adjustments of non-MFN tariffs on non-sensitive goods. Separately, USTR has concluded Section 301 investigations, finding all 60 targeted economies deficient in prohibiting forced labor imports, and is proposing new duties of 10% or 12.5%, depending on each economy’s existing commitments, with a special textile mechanism also proposed.

U.S.-China Board of Trade

The U.S.-China Board of Trade was announced as part of the outcomes from President Trump’s May 2026 visit to Beijing. It is a proposed government-to-government mechanism for managing bilateral trade in non-sensitive goods through reciprocal tariff modifications, with each side identifying products and agreeing to modify certain non-MFN tariffs on an equal-value basis.

USTR is seeking public input to inform the design of this mechanism. The U.S. goods trade deficit with China fell approximately 32% year-over-year to $202 billion in 2025, with March 2026 data showing a 46% year-over-year decline. Products raising economic or national security concerns are excluded from scope.

Meanwhile, a Federal Notice has also been issued by USTR.

USTR is specifically seeking comment on:

• Which Chinese products should be considered non-sensitive and eligible for potential U.S. tariff reduction (identified at the HS 8-digit level)
• Which U.S. export categories face disproportionate Chinese tariff barriers
• How frequently the Board should convene and how trade data should be shared between governments

Comment deadline: July 10, 2026 | Rebuttal deadline: July 27, 2026

Submit feedback at: comments.ustr.gov

Section 301 Forced Labor Investigations

On March 12, 2026, USTR initiated 60 Section 301 investigations into economies that fail to prohibit or effectively enforce a ban on imports of goods produced with forced labor. Following public hearings in April 2026 and over 450 written submissions, USTR has made actionability determinations for all 60.

Determinations:

• 54 economies found to have failed to impose and effectively enforce a forced labor import prohibition, including China, India, Japan, South Korea, Vietnam, Mexico, Brazil, and others.
• 6 economies found to have a prohibition but failed to effectively enforce it: Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan.

Proposed duty rates:

• 10% — Economies with a forced labor import prohibition, or that have made commitments under a Reciprocal Trade Agreement (includes Canada, EU, Indonesia, Mexico, Pakistan, Ecuador, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan, and the UK)
• 12.5% — All other investigated economies

Certain products are exempt, including goods subject to Section 232 tariffs, USMCA-compliant goods, informational materials, donations, and select raw materials and agricultural inputs. A full exemption list (Annex A) is available in the Federal Register notice.

Comment deadline: July 6, 2026 | Hearing date: July 7, 2026 | Request to appear deadline: June 22, 2026

Submit feedback at: comments.ustr.gov

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