U.S. Initiates Forced Labor and Industrial Capacity Investigations Targeting 60 Nations

The United States government launched a massive investigation into the trade practices of approximately 60 countries, focusing on allegations of forced labor. U.S. Trade Representative Jamieson Greer initiated the probe as part of a broader strategy by the second Trump administration to rebuild tariff pressure on global trading partners. The investigation, conducted under Section 301 of the Trade Act, also targets industrial excess capacity in 16 major economies. Officials indicated that the findings could lead to new import bans or significant tariff increases to protect American industries. This move signals a shift toward more aggressive enforcement of labor standards in international supply chains. 60 (countries) — subject to the forced labor trade probe

The announcement triggered immediate diplomatic friction, with India reportedly suspending negotiations on a bilateral trade deal with Washington. Sources familiar with the matter stated that New Delhi is holding off on further discussions until the implications of the new probe are fully understood. Meanwhile, China condemned the investigation ahead of scheduled high-level talks in Paris, describing the move as a disruption to global trade stability. The European Union also responded to the American tariff offensive, emphasizing that existing international agreements must be respected by all parties. European officials expressed concern that unilateral U.S. actions could undermine the multilateral trading system. „They must respect the agreements” — European Union via ANSA

Switzerland is navigating a dual-track trade policy as it faces both the new U.S. measures and ongoing negotiations with its neighbors. The Swiss Federal Council, led by President Guy Parmelin, adopted a draft law on Friday aimed at deepening economic and political ties with the European Union. Despite this move toward Brussels, Guy Parmelin clarified that Switzerland is sticking to its existing mandate for trade talks with the United States. The Swiss government seeks to maintain stable relations with both major trading blocs while protecting its domestic economic interests from potential tariff escalations. Section 301 investigations were a hallmark of the first Trump administration's trade policy, most notably used to justify tariffs on hundreds of billions of dollars' worth of Chinese imports starting in 2018. The Trade Act of 1974 provides the legal framework for the U.S. to investigate and respond to foreign trade practices deemed unfair or discriminatory. Historically, these probes have been used as leverage in broader trade negotiations to secure concessions from trading partners. The inclusion of forced labor as a primary focus reflects an evolution of trade enforcement priorities toward social and labor standards.