New Section 301 tariffs of 10%–12.5% on virtually all imports from 60 economies via new HTSUS Chapter 99 provisions, effective July 24, 2026.

REGULATORY BRIEFING – NEW SECTION 301 TARIFFS ON IMPORTS FROM 60 ECONOMIES (FORCED LABOR-RELATED)

1. What changed

• The President has directed the U.S. Trade Representative (USTR) to impose Section 301 tariffs on all goods from 60 specified economies due to their failure to impose/effectively enforce prohibitions on imports of goods made with forced labor.
• These tariffs are implemented via extensive modifications to subchapter III of chapter 99 of the HTSUS, primarily through new headings 9903.05.20–9903.05.84 and new U.S. note 52.
• The action is effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET July 24, 2026.
• Additional clarifications for patented pharmaceutical articles under heading 9903.05.90 take effect for entries on or after 12:01 a.m. ET July 31, 2026.

2. Tariff structure and rates

2.1 Base Section 301 rates by economy (Section 1(a) of memorandum; Annex headings 9903.05.20–9903.05.84)

• 10% additional ad valorem Section 301 duty (on top of normal duties) on all goods (subject to exemptions) of:

– Argentina (9903.05.22)

– Bangladesh (9903.05.26)

– Cambodia (9903.05.28)

– Canada (9903.05.29)

– Ecuador (9903.05.35)

– El Salvador (9903.05.37)

– Guatemala (9903.05.40)

– Honduras (9903.05.42)

– India (9903.05.44)

– Indonesia (9903.05.45)

– Jordan (9903.05.50)

– Malaysia (9903.05.54)

– Mexico (9903.05.55)

– Pakistan (9903.05.62)

– Sri Lanka (9903.05.72)

– United Kingdom (9903.05.81)

– Trinidad and Tobago (9903.05.78)

• 10% or 0% net-of-MFN for EU and Taiwan; 12.5% or 0% net-of-MFN for Japan, South Korea, Switzerland (9903.05.38–9903.05.39, 9903.05.48–.49, 9903.05.70–.71, 9903.05.73–.76; U.S. note 52(k)):

– European Union (member states):

• If MFN ad valorem (or equivalent) ≥ 10%: no additional Section 301 duty (9903.05.38 – duty remains as in underlying subheading).
• If MFN < 10%: Section 301 duty such that MFN + 301 = 10% total (9903.05.39 – 10% rate shown in column 1 General/Special).

– Taiwan:

• If MFN ≥ 10%: no additional Section 301 duty (9903.05.75).
• If MFN < 10%: Section 301 duty such that MFN + 301 = 10% total (9903.05.76 – 10% rate).

– Japan, South Korea, Switzerland:

• If MFN (or, for certain Korean goods, Special) ≥ 12.5%: no additional Section 301 duty (Japan 9903.05.48; Korea 9903.05.70; Switzerland 9903.05.73).
• If MFN (or Special for Korea) < 12.5%: Section 301 duty such that MFN + 301 = 12.5% total (Japan 9903.05.49; Korea 9903.05.71; Switzerland 9903.05.74 – 12.5% rate).

• 12.5% additional ad valorem Section 301 duty on all goods (subject to exemptions) of all other investigated economies, including but not limited to:

– Algeria (9903.05.20)

– Angola (9903.05.21)

– Australia (9903.05.23)

– Bahamas (9903.05.24)

– Bahrain (9903.05.25)

– Brazil (9903.05.27)

– Chile (9903.05.30)

– China (People’s Republic) (9903.05.31)

– Colombia (9903.05.32)

– Costa Rica (9903.05.33)

– Dominican Republic (9903.05.34)

– Egypt (9903.05.36)

– Guyana (9903.05.41)

– Hong Kong, China (9903.05.43)

– Iraq (9903.05.46)

– Israel (9903.05.47)

– Kazakhstan (9903.05.51)

– Kuwait (9903.05.52)

– Libya (9903.05.53)

– Morocco (9903.05.56)

– New Zealand (9903.05.57)

– Nicaragua (9903.05.58)

– Nigeria (9903.05.59)

– Norway (9903.05.60)

– Oman (9903.05.61)

– Peru (9903.05.63)

– Philippines (9903.05.64)

– Qatar (9903.05.65)

– Russia (9903.05.66)

– Saudi Arabia (9903.05.67)

– Singapore (9903.05.68)

– South Africa (9903.05.69)

– Thailand (9903.05.77)

– Türkiye (9903.05.79)

– United Arab Emirates (9903.05.80)

– Uruguay (9903.05.82)

– Venezuela (9903.05.83)

– Vietnam (9903.05.84)

2.2 Transit grace period (9903.05.85)

• Goods of any affected economy that:

– were loaded on the final mode of transport to the U.S. before 12:01 a.m. ET July 24, 2026; and

– are entered for consumption (or withdrawn from warehouse) before 12:01 a.m. ET July 28, 2026

qualify for 9903.05.85 and are not subject to the new Section 301 additional duties.

3. Key exemptions and carve-outs (U.S. note 52; 9903.05.86–9903.06.21)

3.1 General product-wide exemptions (apply to all 60 economies)

• 9903.05.86 – Articles in the very large list of HTS lines in U.S. note 52(b) are exempt from 9903.05.20–9903.05.84. These include numerous agricultural, energy, metals, chemicals, pharmaceuticals, electronics, art/collectibles, etc. Importers must check if their 8‑digit HTS appears in this list.

• 9903.05.87 – Specific exempt articles (U.S. note 52(c)) such as:

– Etrogs (0805.90.01)

– Certain tropical frozen fruit (0811.90.80)

– Various oilseeds for sowing (e.g., 1207.30.00, 1207.40.00, 1207.50.00, 1207.60.00, 1207.99.03)

– Certain religious-use baked goods (1905.90.10, 1905.90.90)

– Acai products (2008.99.21, 2009.89.70, 2009.90.40, 2106.90.99)

– Certain essential oils for religious use (3301.29.51)

– Specific eucalyptus plywood (4412.33.57)

• 9903.05.88 – Civil aircraft and related parts (meeting GN 6 criteria) in the HTS lines listed in U.S. note 52(d) are exempt from the Section 301 duties, regardless of whether entered under “Free (C)” provisions.

• 9903.05.89 – Articles for pharmaceutical applications in the HTS lines listed in U.S. note 52(e) are exempt from Section 301 duties, regardless of “Free (K)” status.

• 9903.05.90 – Articles of aluminum, steel, copper (and certain derivative articles), passenger vehicles and light trucks, their parts, medium- and heavy-duty vehicles and parts, wood products, semiconductor articles, and (effective July 31, 2026) patented pharmaceutical articles (9903.04.60–9903.04.66) are exempt from these new Section 301 duties when already subject to other specified Chapter 99 measures (U.S. note 52(f)).

• 9903.05.91 – Donations (food, clothing, medicine) to relieve human suffering are exempt.

• 9903.05.92 – Informational materials (publications, films, CDs, artworks, etc.) are exempt.

3.2 Country- and agreement-specific exemptions

• Canada and Mexico – USMCA-origin goods:

– 9903.05.93: Products of Canada entered free under USMCA (including relevant Ch. 98/99 USMCA provisions) are exempt from 9903.05.29.

– 9903.05.94: Products of Mexico entered free under USMCA are exempt from 9903.05.55.

• CAFTA-DR textiles and apparel:

– 9903.05.95: Textile/apparel goods (as defined in GN 29(d)(v)) of Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua entered free under CAFTA-DR are exempt from the relevant Section 301 headings (9903.05.33, .34, .37, .40, .42, .58).

• United Kingdom, EU, Switzerland, Malaysia – targeted product exemptions:

– 9903.05.96: Specific UK medical and imaging equipment (HTS 2208.30.30, 2208.30.60, 8419.20.0010, and numerous 90xx medical device lines) are exempt from 9903.05.81.

– 9903.05.97: Specific EU products (e.g., certain chemical preparations 3823.x, cork products 4501–4504, silk fabrics 5004–5007, certain diamonds/gems 7101–7103, steel granules 7205.10.00, etc.) are exempt from 9903.05.38–.39.

– 9903.05.98: Specific Swiss products (live animals, floriculture, plant extracts, cork, wood, silk, wool, diamonds/gems, etc.) are exempt from 9903.05.73–.74.

– 9903.05.99 and 9903.06.01: Specific Malaysian products (including palm oil, cork, wood, silk, certain plant extracts like psyllium seed husks 1211.90.89, Boswellia 1301.90.91, argan oil 1515.90.81) are exempt from 9903.05.54.

• Cambodia, Guatemala, El Salvador – additional product and FTA-based exemptions:

– 9903.06.02–.03: Specific Cambodian products (similar cork/wood/silk lists and certain plant extracts) exempt from 9903.05.28.

– 9903.06.04–.06: Specific Guatemalan products and CAFTA-DR-eligible textiles/apparel exempt from 9903.05.40.

– 9903.06.07–.09: Specific Salvadoran products and CAFTA-DR-eligible textiles/apparel exempt from 9903.05.37.

• Argentina, Bangladesh, Taiwan, Indonesia, Ecuador, Jordan – targeted exemptions:

– 9903.06.10–.11 (Argentina): Exempts specified cork/wood/silk and certain plant extracts (psyllium 1211.90.89, aloe/Tasmanian pepper/coconut/centella 1302.19.91, argan oil 1515.90.81) from 9903.05.22.

– 9903.06.12–.13 (Bangladesh): Similar exemptions for specified cork/wood/silk and psyllium/argan oil from 9903.05.26.

– 9903.06.14–.15 (Taiwan): Similar exemptions for specified cork/wood/silk and psyllium, Boswellia, aloe/Tasmanian pepper/coconut/centella, argan oil from 9903.05.75–.76.

– 9903.06.16–.17 (Indonesia): Similar exemptions for specified cork/wood/silk and aloe/Tasmanian pepper/coconut/centella from 9903.05.45.

– 9903.06.18–.19 (Ecuador): Similar exemptions for specified cork/wood/silk and aloe/Tasmanian pepper/coconut/centella from 9903.05.35.

– 9903.06.20–.21 (Jordan): Similar exemptions for specified cork/wood/silk and psyllium/aloe/Tasmanian pepper/coconut/centella from 9903.05.50.

3.3 Interaction with other HTS provisions (U.S. note 52(a))

• The additional Section 301 duties under 9903.05.20–.84 apply in addition to:

– normal column 1 general duties in chapters 1–97; and

– any other additional duties under subchapter III or IV of chapter 99 (unless specifically exempted in note 52).

• Goods entered under most Chapter 98 provisions are exempt from the additional duties, except for 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80, where the additional duty applies to the foreign value-added portion as described.
• Antidumping and countervailing duties, and other taxes/fees, continue to apply.

4. Tariff-rate quotas (TRQs) for textiles and apparel (Section 2 of memorandum)

• USTR is directed to establish TRQs (initial duration 3 years) for Bangladesh, Cambodia, Indonesia, and Malaysia to:

– encourage these economies to import U.S. textile goods and U.S. cotton; and

– allow a certain volume of specific textiles and apparel to enter the U.S. free of the Section 301 tariffs (i.e., at 0% additional 301) based on their use of U.S. inputs.

• TRQs are not yet operational; USTR has indicated feasibility by September 1, 2026 and must publish a Federal Register notice with details and effective dates.
• Until TRQs are established, imports of the specific textile and apparel products that will be covered by the TRQs from Bangladesh, Cambodia, Indonesia, and Malaysia are subject to the full 10% Section 301 rate under 9903.05.26, .28, .45, .54.
• USTR is authorized to modify the HTSUS as needed to implement TRQs (9903.06.xx headings will likely be used for TRQ administration).

5. Dates and implementation

• July 24, 2026, 12:01 a.m. ET – Effective date for new Section 301 duties under 9903.05.20–9903.05.84 and U.S. note 52.
• July 24–28, 2026 – Transit grace window for qualifying in-transit goods (9903.05.85).
• July 31, 2026, 12:01 a.m. ET – Effective date for expansion of 9903.05.90 and U.S. note 52(f) to include patented pharmaceutical articles (9903.04.60–9903.04.66) as exempt from these Section 301 duties.
• By approximately September 1, 2026 – USTR expects to be able to establish TRQs for Bangladesh, Cambodia, Indonesia, and Malaysia; effective dates will be set by Federal Register notice.

6. Required actions for importers, brokers, and compliance teams

6.1 HTS classification and country-of-origin mapping

• Identify all imports sourced from the 60 affected economies and map them by:

– 10-digit HTS classification; and

– country of origin.

• Determine whether each HTS line is:

– subject to a 10% or 12.5% Section 301 rate via the relevant 9903.05.xx heading; or

– exempt via 9903.05.85–.99 or 9903.06.01–.21 and U.S. note 52(b)–(k).

• For EU, Japan, Korea, Switzerland, and Taiwan, calculate ad valorem equivalents for any specific/compound duties as needed per U.S. note 52(k) to determine whether the MFN (or Special) rate is above or below the 10%/12.5% thresholds.

6.2 Entry filing and broker instructions

• Update broker instructions to:

– add the appropriate Chapter 99 9903.05.xx code on entries for covered goods from each economy; and

– add any applicable exemption code (e.g., 9903.05.86–.92, 9903.05.93–.99, 9903.06.01–.21) when the product qualifies.

• Ensure that for USMCA-eligible Canadian and Mexican goods, preferential origin is properly documented so that 9903.05.93 or 9903.05.94 can be claimed and Section 301 duties avoided.
• For CAFTA-DR textiles/apparel from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua, ensure CAFTA-DR eligibility is documented to use 9903.05.95 (and 9903.06.06/9903.06.09 where applicable) to avoid Section 301 duties.
• For civil aircraft, pharmaceuticals, autos, wood, semiconductors, and patented pharmaceuticals already subject to other Chapter 99 measures, ensure the correct 9903.05.88–.90 and 9903.04.60–.66 codes are used to avoid double-counting duties.

6.3 Costing, contracts, and supply chain strategy

• Update landed cost models to reflect:

– +10% or +12.5% Section 301 duties on affected imports; and

– any exemptions that may reduce or eliminate the additional duty.

• Review and, where possible, renegotiate contracts with suppliers in the 60 economies to address duty cost sharing and potential sourcing shifts.
• Evaluate alternative sourcing from:

– economies not subject to these Section 301 measures; or

– exempt product categories/HTS lines.

• For textile and apparel supply chains in Bangladesh, Cambodia, Indonesia, and Malaysia, monitor USTR’s TRQ implementation and consider strategies to maximize use of U.S. cotton and textiles to qualify for TRQ-based duty-free treatment once available.

6.4 Systems and controls

• Update internal classification databases and ERP/GT systems to:

– flag all HTS codes listed in U.S. note 52(b)–(k) as exempt where applicable; and

– automatically assign the correct 9903.05.xx/9903.06.xx codes based on origin and HTS.

• Implement controls to ensure that Chapter 98 claims (especially 9802.00.40/.50/.60/.80) correctly apply Section 301 duties only to the foreign value-added portion as required.
• Train customs and logistics staff on the new Section 301 structure, including net-of-MFN rules for EU, Japan, Korea, Switzerland, and Taiwan.

7. References and source documents

• Presidential Memorandum: “Actions by the United States in the Investigations under Section 301 of the Trade Act of 1974 of the Acts, Policies, and Practices of 60 Economies Related to the Failure of Each Economy to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor” – to be published in the Federal Register.
• Annex (HTSUS modifications and U.S. note 52):

– PDF: https://www.whitehouse.gov/wp-content/uploads/2026/07/ANNEX.pdf

• Federal Register notices (when published) will provide:

– official HTSUS text; and

– details and effective dates for TRQs for Bangladesh, Cambodia, Indonesia, and Malaysia.

8. Summary of immediate priorities

• From July 24, 2026, ensure all entries from the 60 economies are screened for Section 301 applicability and correct 9903.05.xx codes are applied.
• Use 9903.05.85 for qualifying in-transit goods entered by July 28, 2026.
• Aggressively review the exemption lists in U.S. note 52(b)–(k) to minimize duty exposure.
• For EU, Japan, Korea, Switzerland, and Taiwan, confirm whether MFN/Special rates exceed 10%/12.5% to determine if any additional Section 301 duty applies.
• Monitor USTR and CBP communications for TRQ implementation and any subsequent modifications under Section 307 of the Trade Act.