Section 301 Forced Labor Import Duties: New 10% to 12.5% Tariffs on Imports from 60 Economies
USTR imposes additional tariffs of 10% to 12.5% on imports from 60 economies under Section 301 of the Trade Act of 1974, related to forced labor. Tariffs take effect July 24, 2026, at 12:01 a.m. eastern time.
What changes
New additional ad valorem tariffs of 10% to 12.5% are implemented on products from 60 economies classified under new Chapter 99 subheadings (9903.05.20 onwards). Mexico is subject to 10% additional duty with certain exceptions. Canada is also subject to 10% with specific exceptions under 9903.05.93. The European Union and Japan have special treatment based on existing tariff rates.
Who is impacted
Importers, customs brokers, and filers importing products from the 60 affected economies, including Mexico, Canada, China, India, Brazil, Argentina, Bangladesh, Indonesia, Vietnam, and European Union member states. Affects virtually all HTSUS chapters (1-97).
Recommended actions
- ›Immediately review the attached schedule with HTSUS classifications from Chapters 1-97 corresponding to Chapter 99 headings
- ›Identify products imported from the 60 affected economies and determine the applicable 9903.05.XX subheading based on country of origin
- ›Verify if products qualify for any exemptions under headings 9903.05.85-9903.05.92 or other country-specific exceptions
- ›Update declaration systems to include new Chapter 99 classifications starting July 24, 2026
- ›Assess cost impact and consider alternative supply chain strategies
On July 23, 2026, the United States Trade Representative (USTR) announced a significant action under Section 301 of the Trade Act of 1974, imposing additional tariffs of 10% to 12.5% on imports from 60 economies. This measure is related to forced labor practices and takes effect on July 24, 2026, at 12:01 a.m. eastern time.
The tariffs apply to products entered for consumption or withdrawn from warehouse for consumption starting from the effective date. Affected classifications span HTSUS Chapters 1 through 97, with new Chapter 99 subheadings specific to each economy. For example, Mexico (9903.05.29) is subject to a 10% additional tariff, while China (9903.05.31) faces 12.5%.
There are important exemptions under headings 9903.05.85-9903.05.92 that apply to all countries, plus country-specific exemptions. For the European Union and Japan, a special mechanism was established where products with existing tariffs equal to or greater than the threshold (10% for EU, 12.5% for Japan) do not pay additional duty.
This action represents one of the broadest Section 301 tariff measures, affecting key trading partners such as Mexico, Canada, the European Union, Japan, China, India, and numerous developing countries. Importers must act immediately to update their declaration processes and assess the financial impact on their operations.