U.S. imposes Section 301 forced-labor tariffs on imports from 60 economies
Date of publication: July 24, 2026.
The United States has imposed new Section 301 duties duties of 10% or 12.5% on most imports from 60 economies following U.S. investigations into whether those economies prohibit - and effectively enforce prohibitions on - the importation of goods produced wholly or partly with forced labor.
The action is broad, origin-based and effective immediately for many entries. It is also separate from existing U.S. forced-labor enforcement tools, including detention and exclusion authorities administered by U.S. Customs and Border Protection (CBP). Importers should therefore assess both the new tariff exposure and their continuing supply-chain due-diligence obligations.
What has happened?
On July 23, 2026, the White House directed the U.S. Trade Representative (USTR) to take final action under Section 301 of the Trade Act of 1974. The action follows investigations initiated on March 12, 2026, and USTR's June 2nd findings that the acts, policies and practices of the 60 economies were unreasonable and burdened or restricted U.S. commerce. USTR received more than 1,600 written comments and heard from more than 100 witnesses before finalizing the action.
The new additional duties apply to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern time on July 24, 2026. There is a narrow in-transit exception for goods loaded on the vessel at the port of loading and already in transit on their final mode of transport before that time, provided they are entered or withdrawn by 12:01 a.m. Eastern time on July 28, 2026.
Although described as "forced labor tariffs," this action is not limited to individual products found to have been made with forced labor. Rather, it applies generally to goods from covered economies, subject to specified exclusions and special rules. USTR's stated rationale is to encourage trading partners to adopt and effectively enforce their own prohibitions on imports of forced-labor goods.
Which tariff rates apply?
The rate depends on the economy of origin and, in several cases, the product's normal U.S. most-favored-nation (MFN) duty rate.
Category | Covered economies | Section 301 treatment |
|---|---|---|
10% additional duty | Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom | 10% additional Section 301 duty, unless an exclusion applies |
MFN-capped treatment (no more than 10%) | European Union and Taiwan | Section 301 duty is imposed only to bring the combined MFN and Section 301 duty to 10%; no Section 301 duty where MFN duty is already at least 10% |
MFN-capped treatment (no more than 12.5%) | Japan, South Korea and Switzerland | Section 301 duty is imposed only to bring the combined MFN and Section 301 duty to 12.5%; no Section 301 duty where MFN duty is already at least 12.5% |
12.5% additional duty | All other economies covered by the action | 12.5% additional Section 301 duty, unless an exclusion applies |
The remaining economies subject to the 12.5% rate are Algeria, Angola, Australia, The 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, Thailand, Turkiye, the United Arab Emirates, Uruguay, Venezuela and Vietnam.
What is excluded or treated differently?
The action applies to most imports from covered economies, but it is not universal. USTR has established exclusions for:
- informational materials, donations and accompanied baggage;
- articles and parts of articles already subject to Section 232 tariffs;
- specified products listed in the action's annexes; and
- certain country-specific products intended to encourage additional forced labor import-prohibition commitments or enforcement.
The exclusions include products USTR determined could create domestic-supply shortages or broader economic disruption, products not available in sufficient quantities or at reasonable prices from U.S. or alternative sources, and products for which the tariffs may not effectively advance the stated policy objective. The technical tariff treatment is implemented through changes to the Harmonized Tariff Schedule of the United States (HTSUS), so exclusions must be assessed at the individual product and tariff-classification level.
The memorandum also directs USTR to establish tariff-rate quotas (TRQs), when feasible, for specified textile and apparel imports from Bangladesh, Cambodia, Indonesia and Malaysia. The TRQs are intended to encourage those economies' purchases of U.S. textile and cotton inputs and would permit qualifying volumes to enter free of these Section 301 duties. Until USTR establishes the TRQs and their effective dates, the applicable 10% Section 301 duties remain in place for the covered products.
What this means for importers
- Origin now has a near-global duty impact.The scope covers 60 economies that USTR says account for 99.4% of U.S. imports. Importers should not assume that sourcing outside China, or moving processing to a third country, avoids additional duty exposure. The relevant question is whether the imported merchandise has an origin covered by this action and whether a product-specific exclusion applies.
- Importers need product-level duty calculations - not only a country-level estimate.The applicable duty may differ based on the country of origin, HTSUS classification, MFN duty rate, exclusion status and whether the product is already subject to Section 232 tariffs. For EU, Taiwan, Japan, South Korea and Switzerland, the Section 301 duty is not necessarily the headline rate; it may be reduced or zero under the MFN-rate cap.
- Immediate entry and in-transit review is important.The July 24, 2026 effective date means companies should review entries being filed now, merchandise in bonded warehouses and cargo already in transit. The in-transit exception is limited and time-sensitive, including its July 28 entry deadline.
- Forced labor compliance remains a distinct issue.Payment of an additional Section 301 duty does not resolve a forced labor compliance concern. U.S. forced-labor import restrictions - including CBP enforcement activity - continue independently of this tariff action. Companies should continue to maintain appropriate visibility into suppliers, production locations and raw material inputs.
- Trade measures may continue to evolve.The final notice directs future implementation steps for the textile and apparel TRQs, and the product exclusions are detailed in annexes rather than a simple country-wide rule. Early practitioner commentary on the proposal also underscored the need for importers to review technical customs implementation, product scope and supply-chain tracing rather than relying solely on announced headline rates.
Suggested next actions
Importers may wish to consider the following practical steps:
- Map exposure by entry: Identify imports from all 60 covered economies, including goods in transit, in bonded warehouses and scheduled for near-term entry.
- Validate country of origin: Reconfirm origin determinations, particularly where manufacturing involves multiple countries, substantial transformation questions or third-country processing.
- Review HTSUS classifications and exclusions: Compare product classifications against the final Section 301 annexes and confirm whether Section 232 treatment or other exclusions affect the entry.
- Update landed-cost models: Recalculate duty exposure using the correct country rate, MFN rate where applicable, and any other duties, fees or trade remedies that may apply.
- Coordinate with customs brokers and internal teams: Ensure entry instructions, customs data, purchase orders and supplier communications reflect the new requirements.
- Maintain and strengthen forced labor controls. Continue supplier onboarding, traceability, document collection and risk-assessment processes because tariff treatment does not replace forced labor import compliance.
- Monitor USTR and CBP developments. Watch for HTSUS implementation guidance, TRQ procedures, further exclusion information and future changes affecting covered economies or products.
- Consult counsel for next steps overall. Given the breadth of the action, the entry timing rules and the interaction with existing customs and forced labor requirements, companies should consult trade counsel for advice tailored to their specific facts.
This article provides general regulatory information, not legal advice.
Bottom line
The Section 301 forced-labor action creates a new 10% or 12.5% duty layer across a substantial share of U.S. imports, effective July 24, 2026. Importers should quickly move from high-level country exposure analysis to product-, origin- and entry-specific review, while continuing to treat forced-labor supply-chain compliance as a separate and ongoing priority.
For more information on how ONESOURCE Global Trade solutions can assist you in managing supply chain risk, tariff challenges, and regulatory compliance, please contact your Account Manager or Customer Success Manager.