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US Weakens Own Forced Labor Enforcement Amid Trade Talks

Created at 31 Jul · 2:06 PM1 source↑ Market-relevant
IN SHORT

Trade data reveals a significant decrease in the U.S. government's enforcement of laws against goods made with forced labor, particularly from China's Xinjiang region, under President Donald Trump. This comes as the administration pursues trade agreements with Beijing and imposes tariffs on other countries for similar alleged violations.

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Key Numbers

40+new Chinese companies added to blacklist
$1.76 billionvalue of goods held up in FY2024
$166 millionvalue of goods held up in FY2025
140+entities on forced-labor blacklist under Biden
60trading partners facing new tariffs

Who's Involved

Donald Trump
President of the United States
Laura Murphy
Former senior policy adviser at Department of Homeland Security
Marco Rubio
Then-GOP senator and current Secretary of State
Scott Bessent
Treasury Secretary
Jamieson Greer
U.S. Trade Representative
Xi Jinping
Chinese leader
Luiz Inácio Lula da Silva
Brazilian President

↳ Why This Matters

The U.S. is facing accusations of hypocrisy for pressuring other countries to enforce forced labor bans while its own enforcement has weakened, potentially undermining its trade policy and international standing on human rights.

Key facts

  • The U.S. government's enforcement of a ban on goods made with Chinese forced labor has significantly decreased under President Donald Trump.
  • The value of goods detained at the border for suspected Xinjiang origin dropped from $1.76 billion in FY2024 to $166 million in FY2025.
  • The Trump administration has not added new companies to the forced labor blacklist, which presumes goods from Xinjiang are made with coercion.
  • The Department of Homeland Security added over 40 new Chinese companies to the blacklist effective August 3.
  • This reduction in enforcement is reportedly due to concerns about upsetting China during ongoing trade negotiations.
  • The U.S. recently imposed tariffs on 60 trading partners for failing to adequately combat forced labor.

Trade data indicates a significant reduction in the U.S. government's enforcement of laws targeting goods produced with forced labor, particularly from China's Xinjiang region, during President Donald Trump's administration. This decline occurs while the administration simultaneously pressures other countries to strengthen their own forced labor enforcement and imposes tariffs based on such allegations.

The U.S. ban on goods from Xinjiang, a region where over a million Uyghurs and other minorities have been detained in what the U.S. government calls genocide, presumes these items are made with coerced labor. Enforcement of this ban, overseen by multiple agencies, has reportedly weakened, with no new companies added to a trade blacklist for a period. The value of goods detained at the border on suspicion of Xinjiang origin has also dramatically decreased.

Sources attribute this pullback primarily to concerns about upsetting the Chinese government as President Trump pursues trade and economic deals with Chinese leader Xi Jinping. Shifting priorities within Customs and Border Protection (CBP) and staffing cuts are also cited as contributing factors.

Despite the reported decline in enforcement actions, the administration maintains it is still enforcing the measure and has issued new guidance to importers. One U.S. official suggested lower detention numbers reflect stronger deterrence, indicating importers have improved their supply chains.

This situation presents a contradiction as the U.S. urges other nations to enforce forced labor bans while its own enforcement appears to be weakening. China has criticized the U.S. for using human rights as a pretext for protectionist behavior, denying allegations of genocide and stating its policies in Xinjiang aim to improve livelihoods. Other countries, like Brazil and the EU, have also questioned the premise of U.S. tariffs, highlighting their own robust bans on goods made with forced labor.

Frequently asked questions

The Uyghur Forced Labor Prevention Act, passed in December 2021, presumes that goods made in China's Xinjiang region are produced with forced labor and bars them from entering the United States.

Sources suggest the decline is due to concerns about upsetting the Chinese government during trade negotiations, as well as shifting priorities and staffing cuts within relevant agencies.

The value of goods held up at the border due to suspicion of Xinjiang origin dropped from $1.76 billion in fiscal year 2024 to $166 million in fiscal year 2025.

China has accused the U.S. of manipulating the forced labor issue for protectionist purposes and denied allegations of genocide in Xinjiang.

What Happens Next

01The Department of Homeland Security has added more than 40 new Chinese companies to the forced labor blacklist.
02The U.S. administration continues trade talks with China.
03Businesses have filed lawsuits challenging the administration's tariff rates.

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Cadence

How It Developed

The U.S. government's enforcement of a law targeting Uyghur forced labor has decreased significantly under President Donald Trump.
The administration has not added new companies to a trade blacklist for sourcing goods from Xinjiang.
The value of goods held up at the border due to suspected Xinjiang forced labor has plummeted.
The Department of Homeland Security added over 40 new Chinese companies to the blacklist effective August 3.
The decline in enforcement is attributed to concerns about upsetting the Chinese government during trade talks.
The White House imposed tariffs on 60 trading partners for not doing enough to prevent forced labor.
China accused the U.S. of manipulating the forced labor issue for protectionist behavior.
Brazil and the EU questioned the premise of U.S. tariffs, citing their own strict bans on forced labor goods.

Sources

T1
The US is asking countries to step up forced labor enforcement. Its own is weakening.Politico

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