USTR Imposes Section 301 Forced Labor Tariffs starting 12:01 AM on 24 July

USTR published a press release, the pre-publication version of the Federal Register Notice (FRN), and a Fact Sheet announcing tariffs between 10% and 12.5% to be imposed on 60 U.S. trading partners who failed to implement a ban on goods produced with forced labor per the Section 301 investigation. Tariffs will go into effect at 12:01 AM on 24 July 2026 with only a 4-day transit window as detailed in the published CBP CSMS guidance.

The pre-publication version of the FRN outlines the tariff rates for the 60 U.S. trading partners and exemptions including exemptions per country. The rates for countries targeted in this tariff action are:

• Additional 10% tariff on imports from 17 countries: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, the UK, Trinidad and Tobago
  
  • USMCA-compliant goods from Canada or Mexico are exempt from the 10% tariff‍
• Tariff rate of 10% or 12.5%, net of MFN rate on imports from the following markets:
  
  • EU and Taiwan:
    
    • Imports with MFN <10%: 10% tariff rate to be applied on imports into the US is a tariff ceiling inclusive of MFN duties applied and Section 301 tariff
    • Imports with MFN >10%: Section 301 Forced Labor tariff rate of 0%
  • Japan, Korea, and Switzerland:‍
    
    • Imports with MFN <12.5%: 12.5% tariff rate to be applied on imports into the US is a tariff ceiling inclusive of MFN duties applied and Section 301 tariff
    • Imports with MFN >12.5%: Section 301 Forced Labor tariff rate of 0%‍
• Additional 12.5% tariff on imports from the remaining 38 countries, noted below, with deficient policies combatting imports of goods produced with forced labor