What's Happening?
Recent actions by U.S. Customs and Border Protection (CBP), the Office of the United States Trade Representative (USTR), and the White House indicate a renewed emphasis on enforcing trade compliance related to forced labor. In June 2026, CBP issued three
new Withhold Release Orders (WROs) targeting products from Serbia and Jordan, while the USTR proposed additional Section 301 duties on imports from 60 economies failing to prohibit forced labor. A new executive order has directed federal agencies to prioritize forced labor enforcement, reflecting a broader trade policy approach to this issue.
Why It's Important?
These developments highlight the U.S. government's commitment to eradicating forced labor from global supply chains. Companies with international operations must reassess their compliance programs and supply chain transparency to avoid potential enforcement actions. The proposed tariffs and WROs could lead to increased costs and operational challenges for businesses importing goods from affected regions. This focus on forced labor also underscores the ethical and legal responsibilities of companies to ensure their supply chains are free from exploitative practices.
What's Next?
Businesses should enhance their due diligence and documentation practices to demonstrate compliance with forced labor regulations. They should also monitor ongoing USTR proceedings and potential tariff actions that could impact their sourcing strategies. The U.S. government is likely to continue expanding its enforcement efforts, making it crucial for companies to stay informed and proactive in addressing forced labor risks.
