Sri Lanka is among 60 economies targeted by the Office of the United States Trade Representative (USTR), which has proposed additional tariffs after determining that these countries have failed to impose and effectively enforce prohibitions on the importation of goods produced with forced labour.
Under the proposed measures, Sri Lanka would face a 12.5% additional duty on its exports to the United States, as it has neither imposed nor effectively enforced a prohibition on forced labour imports.
For economies that have imposed partial regimes or committed to prohibitions through reciprocal trade agreements, the USTR has proposed a lower 10% duty.
All others, including Sri Lanka, fall under the higher 12.5% tariff rate. A special textile mechanism has also been proposed to allow limited apparel and textile imports at reduced tariff rates.
The list of affected economies includes major trading partners such as China, India, Japan, South Korea, the United Kingdom, the European Union, Canada, Mexico, Australia, Brazil, and South Africa, alongside Sri Lanka and dozens of others.
In total, 54 economies were found to have failed to impose prohibitions, while six, including Canada, Mexico, Pakistan, Indonesia, Ecuador, and the EU, were cited for failing to effectively enforce existing regimes.
United States Trade Rep Jamieson Greer said the failure of trading partners to address forced labour imports “creates a dynamic where American workers are forced to compete globally on an uneven playing field,” adding that the U.S. “will no longer tolerate this disparity.”
Public hearings on the proposed actions are scheduled for July 7, 2026, with written comments due by July 6 and requests to appear at hearings by June 22.
Full statement : https://ustr.gov/about/policy-offices/press-office/press-releases/2026/june/ustr-makes-findings-and-proposes-action-60-section-301-investigations-relating-failures-take-action (Newswire)