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The new Section 301 tariffs for forced labor are vastly excessive

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  • William R. Cline

    (Peterson Institute for International Economics)

Abstract

The Trump administration's 10 to 12.5 percent tariffs imposed under the forced-labor provision of Section 301 of the Trade Act of 1974 are roughly 40 to 50 times greater than what could be justified by the estimated US exports lost and imports increased through trade in goods produced using forced labor. Forced labor accounts for an estimated 5.5 million workers in tradable-goods sectors, compared with nearly 2 billion workers in those sectors worldwide. Cline argues that the forced-labor provision, therefore, does not provide a credible economic basis for replacing the "reciprocal" tariffs that the Supreme Court ruled illegal.

Suggested Citation

  • William R. Cline, 2026. "The new Section 301 tariffs for forced labor are vastly excessive," Policy Briefs PB26-14, Peterson Institute for International Economics.
    • Handle: RePEc:iie:pbrief:pb26-14
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