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Is The U.S. Tariff Seesaw Continuing?

• By  Textile Excellence
• June 15, 2026

The U.S. Trade Representative (USTR) has proposed a fresh round of tariffs on imports from several countries over concerns related to forced labour practices. If implemented, the move could reshape global textile and apparel sourcing.

Under the proposal, imports from China, Hong Kong, India and Vietnam would face an additional 12.5% tariff, over and above existing duties. Imports from Bangladesh, Pakistan, Cambodia, Indonesia, Malaysia and several other economies would face an additional 10% duty.

The proposed tariffs are not final. USTR will hold public hearings and seek feedback from businesses before taking a decision.

USTR argues that countries that fail to effectively prevent imports made with forced labour create unfair competition by allowing lower-cost goods to enter global markets. The agency believes stronger measures are needed to protect businesses that comply with labour standards.

For textile and apparel exporters, the implications could be significant. Higher tariffs could affect pricing, competitiveness and sourcing decisions in the U.S. market.

However, the proposal also offers a potential opportunity. USTR has suggested a special textile mechanism that could allow a certain volume of textile and apparel imports to enter the U.S. at lower tariff rates. The benefit would be linked to the amount of U.S. cotton and textile inputs purchased by exporting countries.

The proposal comes after the Trump administration faced legal setbacks over tariffs imposed under the International Emergency Economic Powers Act (IEEPA). President Trump had warned that alternative measures would follow. This proposal appears to be part of that shift.

Over recent months, the pattern has become familiar:

• The administration imposes tariffs.
• Courts challenge or overturn some of them.
• Alternative legal routes are explored.
• Businesses adjust.
• New tariff proposals emerge.
• Fresh legal challenges follow.

The result is growing uncertainty for importers and exporters.

For the textile industry, sourcing decisions are becoming more complex. Companies can no longer focus only on price, lead times and quality. They must also factor in tariff risks, forced labour compliance, geopolitical developments and, potentially, the role of U.S. cotton purchases.

IEEPA vs Section 301: What's Different?

The earlier tariffs were imposed under IEEPA, an emergency powers law that allowed the administration to move quickly. Courts questioned whether that law actually gave the President the authority to impose broad tariffs, leading to legal setbacks.

The new proposal relies on Section 301 of the Trade Act of 1974, a law specifically designed to address unfair foreign trade practices. It has been used before, including for tariffs on Chinese imports during Trump's first term. Courts have generally recognised USTR's authority under Section 301, giving it a stronger legal foundation.

That does not mean these tariffs cannot be challenged. But unlike the IEEPA measures, they are less likely to be struck down simply because of the law under which they were imposed.

The broader message for textile businesses is clear. The U.S. government's objective of using tariffs to address issues such as forced labour and trade imbalances does not appear to have changed. What is changing is the legal route being used to pursue that objective.

The story, therefore, is not that the tariff strategy has failed.

It is that the first pathway hit a roadblock, and Washington is now trying a sturdier route to reach the same destination.

The tariff seesaw shows no signs of slowing.

The broader message for textile businesses is clear. The U.S. government's objective of using tariffs to address issues such as forced labour and trade imbalances does not appear to have changed. What is changing is the legal route being used to pursue that objective. The story, therefore, is not that the tariff strategy has failed. It is that the first pathway hit a roadblock, and Washington is now trying a sturdier route to reach the same destination. The tariff seesaw shows no signs of slowing.