USTR Finalizes Section 301 Forced Labor Tariffs on 60 Economies

• The USTR has finalized Section 301 tariffs on 60 economies for failing to enforce prohibitions on goods produced with forced labor, effective July 24, 2026.
• These new tariffs will be an additional 10% or 12.5% on most imports, replacing expiring Section 122 duties, with specific rates assigned based on a country’s commitment to address forced labor.
• Businesses should identify import exposure from affected countries, review product exclusions, and evaluate sourcing strategies to mitigate the impact of these new tariffs.

Source EY

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USTR takes final action imposing tariffs on 60 trading partners as Section 122 tariffs expire

• The USTR has finalized new Section 301 tariffs of 10% or 12.5% on imports from 60 trading partners, effective July 24, 2026, targeting those failing to enforce prohibitions against forced labor goods.
• The final action refines the two-tier tariff structure, moving five countries to the lower 10% rate based on their recent commitments, and introduces specific tariff-rate quotas (TRQs) for certain textile-producing nations.
• A range of products are exempt from these new duties, including those subject to Section 232 tariffs, certain raw materials, and goods from USMCA and CAFTA-DR countries, with implementing guidance issued by CBP.

Source EY

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