Following the expiry of the additional tariffs imposed under Section 122, the United States is introducing new tariff measures under Section 301 of the Trade Act of 1974. The U.S. Government concluded that certain trading partners have failed to impose and effectively enforce prohibitions on imports produced with forced labour, thereby creating an unreasonable burden on U.S. commerce.
New tariff rates for 60 trading partners
A total of 60 trading partners are affected by the measures. The applicable tariff rate depends, among other factors, on whether the country concerned has already introduced an import ban on goods produced using forced labour:
- 10% for trading partners with a corresponding import ban
- 12.5% for trading partners without such a ban
Special calculation rules apply to certain countries and regions.
European Union and Taiwan
Goods originating in the European Union or Taiwan will generally be subject to a tariff rate of 10%:
- If the standard most-favoured-nation (MFN) tariff rate is below 10%, the total tariff will be increased to 10%.
- If the MFN tariff rate is already 10% or higher, that rate will remain unchanged and no additional tariff will apply.
Japan, South Korea and Switzerland
A corresponding threshold of 12.5% applies to goods from Japan, South Korea and Switzerland:
- If the MFN tariff rate is below 12.5%, the total tariff will be increased to 12.5%.
- If the MFN tariff rate is 12.5% or higher, no additional tariff will be imposed.
Other affected countries
For the other countries covered by the measures, the new duties will be imposed in addition to the standard MFN tariff.
An additional tariff of 10% applies to:
Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
An additional tariff of 12.5% applies to:
Algeria, Angola, Australia, the Bahamas, Bahrain, Brazil, Chile, China, Colombia, Costa Rica, the 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, Türkiye, the United Arab Emirates, Uruguay, Venezuela and Vietnam.
Exemptions
Products already subject to sector-specific additional tariffs under Section 232 are not covered by the new Section 301 tariffs. These include, in particular:
- steel, aluminium and copper;
- motor vehicles and vehicle parts;
- medium- and heavy-duty vehicles and their parts;
- wood and certain wood products.
The applicable Section 232 provisions will continue to govern these goods.
Further exemptions apply to certain raw materials, agricultural products and goods that are not grown, produced or manufactured in sufficient quantities in the United States. Country-specific exemptions also apply. Exemption codes are additionally provided for informational materials, donations and personal baggage.
Effective date and transitional arrangements
The new tariffs will generally apply to goods entered for consumption from 12.01 a.m. Eastern Standard Time (EST) on 24 July 2026. They will also apply to goods withdrawn from a bonded warehouse for consumption from that time.
Transitional arrangements apply to goods already in transit. The exemption is available where the goods were loaded before the relevant cut-off time and were already in transit on the final mode of transport. The goods must be entered for consumption or withdrawn from a bonded warehouse for consumption before 12.01 a.m. EST on 28 July 2026.
