TRADE ALERT – IMPORTS
HEADLINE	Administration Implements Section 301 Tariffs on 60 Economies
DATE	July 27, 2026
EFFECTIVE DATE	July 24, 2026, 12:01 a.m. Eastern time
AGENCY	Department of Commerce; Department of Treasury; Department of Homeland Security; U.S. Trade Representative; Customs and Border Protection; Trump Administration
BACKGROUND	On March 12, 2026, the US Trade Representative (“USTR”) announced investigations under Section 301 of the Trade Act of 1974 on 60 economies in connection with forced labor practices. As of June 2, 2026, the USTR determined that these 60 economies failed “to impose and effectively enforce a prohibition on the importation of goods produced with forced labor,” and propose rates of 10% or 12.5%, depending on whether an economy has taken steps to address forced labor imports.    On July 23, 2026, under President Trump’s direction, the USTR imposed tariffs (hereafter “Forced Labor 301” tariffs) for the failure of these countries to impose and effectively enforce a prohibition on the importation of goods produced with forced labor. These tariffs effectively replace the now-expired Section 122 tariffs, and are imposed pursuant to the same law that was used to impose additional tariffs on goods from China in 2018-2019.   These tariffs became effective for covered merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern time on July 24.
DETAILS	The Forced Labor 301 duties are generally 10% or 12.5% and apply broadly to most products of each covered economy rather than particular industries or tariff classifications.   Forced Labor 301 Duty Rates   a. EU and Taiwan – a flat 10% rate for the combination of the Section 301 duty and ordinary duty rates (for ordinary duty rates less than 10%) b. Japan, South Korea, and Switzerland – a flat 12.5% rate for the combination of the Section 301 duty and ordinary duty rates (for ordinary duty rates less than 12.5%): c. 10% additional duty: Argentina Bangladesh Cambodia Canada Ecuador El Salvador Guatemala Honduras India Indonesia Jordan Malaysia Mexico Pakistan Sri Lanka Trinidad and Tobago U.K. d. 12.5% additional duty: Algeria Angola Australia Bahamas Bahrain Brazil Chile China Colombia Costa Rica Dominican Republic Egypt Guyana Hong Kong Iraq Israel Kazakhstan Kuwait Libya Morocco New Zealand Nicaragua Nigeria Norway Oman Peru The Philippines Qatar Russia Saudi Arabia Singapore South Africa Sri Lanka Thailand Turkiye UAE Uruguay Venezuela Vietnam   The duties will stack on top of ordinary duties (except in the case of the EU, Japan, South Korea, Switzerland, and Taiwan) and other duties such as Section 201, Section 301, and AD/CVD duties, but will not stack on Section 232 duties.   Annex I of the USTR’s final notice publishes the formal implementing language for the tariff schedule. The USTR also will develop special tariff rate quotas for certain textile products and cotton from Bangladesh, Cambodia, Indonesia, and Malaysia.   There are a significant number of exceptions and product exemptions.   In-Transit Exception The Section 301 duties do not apply to goods that: a. Were loaded onto a vessel at the port of loading and were in transit on the final mode of transit before 12:01 a.m. eastern time on July 24; and b. Are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 eastern time on July 28.   Product Exemptions The following products are exempt from the Forced Labor 301 duties: a. Informational materials, donations, and accompanied baggage; b. Articles and parts of articles subject to 232 tariffs; c. Goods entered free of duty under USMCA and CAFTA-DR; d. Specified pharmaceutical applications; e. Product exemptions identified in Table A of Annex II of the Federal Register Notice, including certain: – raw materials, that if subject to the proposed additional tariffs, could lead to the unavailability of domestic supply; – products that could cause economy-wide disruptions if subject to the proposed additional tariffs; – certain products that cannot be grown or produced in sufficient quantities in the United States or obtained from other sources – products, that if exempted from these tariffs, would encourage economies to enact and effectively enforce a forced labor import prohibition; and – articles for which additional tariffs may not contribute substantially to the elimination of the acts, policies, and practices determined to be actionable in the investigations. Finally, some additional exemptions are economy-specific as applied to specific HTSUS provisions (see Tables B-O of Annex II) (particularly certain products of Argentina, Bangladesh, Cambodia and Canada). While there have already been legal challenges to the Forced Labor 301 duties that were announced on July 24, even if those challenges are ultimately successful it is doubtful these tariffs will be broadly overturned in the near term.
BASIS	Trade Act of 1974 (Section 301), 19 U.S.C. § 2411
HTS/  PRODUCTS	All products defined except for specified articles and those articles subject to Section 232 tariffs.
COUNTRY	See above
CITE	Federal Register: Federal Register :: Public Inspection: Section 301 Action: Investigations of Acts, Policies, and Practices of Various Economies Related to the Failure of Each Economy to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor   CBP CSMS: CSMS # 69326983 – GUIDANCE: Section 301 Forced Labor Import Duties   White House: Actions by the United States in the Investigations under Section 301 of the Trade Act of 1974 of the Acts, Policies, and Practices of 60 Economies Related to the Failure of Each Economy to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor – The White House   Press Release: USTR Takes Action in Forced Labor Section 301 Investigations | United States Trade Representative

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