US proposes surtax on 60 countries for failure to combat forced labor; Brazil is on the list

Aerial view of the White House, on May 2, 2026
REUTERS/Ken Cedeno
The United States Trade Representative (USTR) determined, this Wednesday (3), that 60 countries, including Brazil, failed to effectively impose and monitor the ban on the import of goods produced with forced labor. In response, the American government proposed the application of additional tariffs of 12.5% on all products coming from these economies.
The decision is based on Section 301 of the Trade Act of 1974, following an investigation that began in March of this year. This is the same text used to base the proposal to apply 25% tariffs on Brazilian goods, including PIX, illegal deforestation, piracy and failures in the application of anti-corruption laws.
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According to the official report, the practice of these countries is considered "irrational" and restricts US trade by creating unfair competition for American companies and workers.
The US government has established two levels of surcharge:
10% additional tariff for countries that already have a partial ban or that have formally committed to applying rules through Reciprocal Trade Agreements. They are: European Union, Mexico, Canada, Indonesia, Pakistan and Ecuador.
12.5% additional tariff for all other economies investigated that do not have effective control regimes. They are: Brazil, China, India, Japan, South Korea, United Kingdom, Argentina, Saudi Arabia, among others.
Míriam Leitão: 25% rate is more dangerous than the 2025 tariff
"The failure of our trading partners to deal with the import of goods made with forced labor is unacceptable", said Ambassador Jamieson Greer. "This forces American workers to compete on an unequal playing field. We will no longer tolerate this disparity."
In relation to Brazil, the investigation concluded that the country failed to impose and monitor a ban on the import of goods produced with forced labor.
According to the report, although Brazil makes commitments against slave labor in free trade and investment agreements, the country still lacks an effective legal prohibition that would, in practice, prevent the entry of goods produced under these conditions into its domestic market.
Therefore, Brazil's conduct was classified as irrational and harmful to North American trade.
The report also details sectoral case studies, pointing out the risk of forced labor in the production of rice in Myanmar and tobacco in Malawi. In addition, European countries such as Poland and Spain are cited as destination markets for exports that compete directly with American products.
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer speak to the press after trade negotiations with China in Geneva
Martial Trezzini/Handout via Reuters
Next steps
The measure will still go through a period of public consultation before being implemented. The US government will receive written comments until July 6, 2026.

The following day, July 7, the USTR will hold public hearings to discuss the proposed actions.
The investigation concluded that the entry of these products into global markets not only harms the profitability of ethical companies, but also encourages the maintenance of modern slave labor by allowing goods produced at artificially low costs to circulate freely.
The 60 economies mentioned as the focus of the investigation are:
South Africa South
Algeria
Angola
Argentina
Australia
Bahamas
Bahrain
Bangladesh
Brazil
Cambodia
Canada
Qatar
Kazakhstan
Chile
China (People's Republic of China)
Colombia
South Korea
Coast Rica
Egypt
El Salvador
United Arab Emirates
Ecuador
Philippines
Guatemala
Guyana
Honduras
Hong Kong, China
India
Indonesia
Iraq
Israel
Japan
Jordan
Kuwait
Libya
Malaysia
Morocco
Mexico
Nicaragua
Nigeria
Norway
New Zealand
Oman
Pakistan
Peru
Kingdom United
Dominican Republic
Russia
Saudi Arabia
Singapore
Sri Lanka
Switzerland
Taiwan
Thailand
Trinidad and Tobago
Turkey
European Union
Uruguay
Venezuela
Vietnam

Source: G1

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