Tariffs and Trade Deals: The New Forced Labor Enforcement Playbook
Supply Chain Brain
Lucas Rock wrote for SupplyChainBrain on how the US government is using Section 301 investigations to encourage its trading partners to strengthen, adopt, and enforce their own forced labor prohibitions.
Previously, the US Trade Representative has initiated investigations under Section 301 of the Trade Act of 1974 to determine whether foreign trade practices are unreasonable, discriminatory, or burden US commerce. The result is that Section 301 has been used as a tool to impose tariffs and other trade restrictions on imports.
Now, Section 301 has become a vehicle for addressing labor rights violations, including forced labor, an expansion from traditional enforcement methods under the Uyghur Forced Labor Prevention Act’s rebuttable presumption and Section 307’s withhold release orders and findings. For companies sourcing from affected countries or sectors, tariff exposure now correlates directly with forced labor risk in supply chains, adding financial implications to what has traditionally been treated as a compliance or reputational issue.
The intersection of Section 301 actions, deals and frameworks, and tariff leverage signals a shift towards a global enforcement environment that demands a broader approach to compliance and can introduce heightened risk for importers. If trading partners implement their own forced labor import bans, companies will need supply chain due diligence programs that satisfy not only US requirements, but also those of partner countries. Companies that invest now in robust supply chain transparency and due diligence will be better positioned to navigate this evolving landscape.
