SOUTHEAST ASIA — The Office of the U.S. Trade Representative (USTR) released a Section 301 Investigation report in June 2026, finding that Thailand, Vietnam, the Philippines, Malaysia, and Cambodia do not meet U.S. standards for import prohibition systems regarding forced labor. The investigation, launched in March 2026, focused on determining if countries have established and effectively enforced systems to prohibit imports produced by forced labor.

As a result of the findings, Thailand, Vietnam, and the Philippines will face a 12.5 percent tariff rate. Malaysia and Cambodia received a tariff of 10 percent due to their lack of U.S.-standard import prohibition systems. U.S. Trade Representative Jamieson Greer stated his intention to hold countries to the trade agreements signed over the past year.

During the 2025 reciprocal tariff negotiations, individual ASEAN countries experienced pressure to make concessions. Malaysia committed to introducing an import prohibition system within two years after its 2025 reciprocal trade agreement with the U.S. enters into force. Cambodia also made a commitment to introduce an import prohibition system alongside enhanced labor law enforcement.

Thailand and Vietnam remain at the framework agreement stage with the U.S. In contrast, Indonesia and Malaysia have reached agreements with the U.S.

The tariffs represent the outcome of an investigation into whether these countries have adequate systems to prevent the importation of goods made with forced labor, aligning with the U.S. stance on labor practices in international trade. The tiered tariffs reflect the varying degrees of compliance and commitments made by the affected nations.