Federal Trade Agency Proposes Tariffs on Foreign Medical Supply Chains Built on Forced Labor

U.S. just proposed tariffs of 10% to 12.5% on medical supply imports from 60 countries that tolerate forced labor, vindicating years of AMMA advocacy.

WASHINGTON, DC, UNITED STATES, June 3, 2026 /EINPresswire.com/ -- WASHINGTON, D.C.: The American Medical Manufacturers Association (AMMA) today claimed a major advocacy victory, welcoming a landmark federal trade action that reflects arguments the association has pressed for years at the highest levels of government. These findings will incentivize the private sector to invest in domestic suppliers to ensure safe, reliable, and responsibly sourced products.

The United States Trade Representative’s June 2 findings, published in a full-agency report and a Federal Register notice, concluded that all 60 investigated economies have failed to impose or effectively enforce a prohibition on imports produced with forced labor. Key findings include:

- All 60 economies were found to be engaging in acts, policies, or practices that are “unreasonable” under Section 301 of the Trade Act of 1974 and that burden or restrict U.S. commerce.

- 45 economies, including China, India, Vietnam, Malaysia, and Thailand, have no meaningful prohibition on forced-labor imports. They face a proposed 12.5% additional tariff.

- 15 economies, including Mexico, Canada, and members of the European Union, have statutory prohibitions on the books but are willfully failing to enforce them. They face a proposed 10% additional tariff.

- The USTR determined that foreign failure to act subjects U.S. producers to unfair competition in both domestic and international markets.

- A separate “Textile Mechanism” would allow a limited volume of apparel and textile imports to enter at a reduced tariff rate, a provision AMMA is working to limit.

The proposed tariffs are subject to a public comment period and final administrative determination before taking effect.

The action marks the latest sign that the voice of AMMA and its membership of domestic PPE makers is impacting Washington, where the association has spent years building relationships with key Members of Congress and senior Administration officials to elevate domestic medical manufacturing as a national security and economic competitiveness priority. The association has also been a clear voice of support for President Trump and his predecessors who sought to end unfair trade practices.

“Foreign governments and their state-backed manufacturers have spent years rigging the market for medical supplies against American workers and American companies. We thank President Trump, Ambassador Greer, and this Administration for making this investigation a reality,” said Tom Allen, President of AMMA and CEO of Altor Safety, a New York-based manufacturer of PPE.

“Nations like China, Malaysia, Vietnam, and many others have tolerated, and in some cases enabled, forced labor in their supply chains. They then dumped those products into the U.S. at prices no ethical manufacturer can match. AMMA has been making the case that this isn’t free trade to Congressional offices and at the highest levels of the Administration. Today, Washington is listening,” Allen added.

The USTR’s proposed rules will provide a boost to domestic makers of PPE and critical medical supplies.

- The makers of N95 respirators and surgical masks, a market where Chinese imports dominate, will benefit from a 12.5% additional tariff on goods from bad trade actors.

- In addition, medical gowns, isolation apparel, and meltblown textiles sourced from major Asian manufacturing hubs are similarly likely to be facing these tariffs.

- For makers of nitrile gloves, whose US market relies heavily on imports from China, Malaysia, and Thailand, the tariffs will strengthen the case for scaling domestic manufacturing while raising procurement costs for buyers still reliant on these foreign suppliers.

“American medical manufacturers don’t need handouts; they need a fair fight,” said Eric Axel, Executive Director of AMMA. “For too long, foreign competitors have used coerced workers as a cost-cutting weapon while our members invested in their communities, paid fair wages, and met rigorous safety standards.

“AMMA has worked hard to make sure policymakers understand what’s at stake, and this action shows that work is paying off. These tariffs begin to close the gap. But we won’t stop here. We will push for CMS payment adjustments that reward domestic sourcing, stronger Buy American mandates, and long-term federal stockpile contracts that give manufacturers the certainty to grow,” Axel added.

AMMA also raised concern about a proposed “Textile Mechanism” that could allow specific quotas of apparel-category goods to enter at reduced tariff rates. This is a potential loophole AMMA is committed to closing in the final rule.

With the rulemaking in a preliminary stage, AMMA is preparing an association-wide formal comment submission and urging all domestic producers to engage directly in the federal process. Key deadlines include:

- June 22, 2026: Deadline to request to testify at USTR public hearings
- July 6, 2026: Deadline to submit formal written comments to the Federal Register
- July 7, 2026: USTR public hearings commence

In the USTR report, the agency noted the following in its Executive Summary. “For nearly 100 years, the United States has prohibited the importation of goods produced with forced labor under Section 307 of the Tariff Act of 1930 (19 U.S.C. § 1307). Although it is universally recognized that forced labor is a practice that should not be tolerated, the use of forced labor across the world continues to persist and has even increased in recent years.“

In his official statement accompanying the report, Ambassador Jamieson Greer, the US Trade Representative, added, “The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”

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About AMMA
The American Medical Manufacturers Association (AMMA) is an alliance of domestic makers of critical medical supplies, Personal Protective Equipment (PPE) manufacturers, and partners dedicated to transforming the landscape of American innovation and manufacturing. AMMA’s mission is to ensure that the United States has consistent access to high-quality, U.S.-made PPE while actively working to create a more favorable environment for American innovation. AMMA fosters strategic partnerships, advocates for policy changes, and supports domestic producers. AMMA aims to catalyze a thriving ecosystem for medical manufacturing. www.AMMAUnited.org

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