USTR imposes new 10–12.5% Section 301 duties on nearly all U.S. imports from 60 economies, with detailed HTS exemptions, effective July 24, 2026.

This Federal Register notice is a final Section 301 action that directly changes U.S. import duty treatment for a very broad set of products.

Scope and rates

USTR concludes 60 separate Section 301 investigations into foreign economies’ failure to impose and effectively enforce forced-labor import prohibitions. For each of the 60 named economies, USTR imposes additional ad valorem Section 301 duties on all products of that economy, unless specifically exempted in Annexes I and II.

The duty structure is:

• 10% additional Section 301 duty on all goods of: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
• 10% net-of-MFN for EU and Taiwan: for any product of the European Union or Taiwan with an MFN rate <10%, a Section 301 duty is imposed so MFN + 301 = 10%; if MFN ≥10%, the Section 301 rate is 0%.
• 12.5% net-of-MFN for Japan, South Korea, and Switzerland: for any product of these economies with an MFN (or, for Korea, applicable special) rate <12.5%, a Section 301 duty is imposed so total duty = 12.5%; if MFN/special ≥12.5%, the Section 301 rate is 0%.
• 12.5% additional Section 301 duty on all goods of all other investigated economies (e.g., China, Brazil, Australia, Russia, Saudi Arabia, Vietnam, etc.), unless exempted.

These are new duties layered on top of existing MFN and other special rates, except where the net-of-MFN cap applies.

Implementation and HTSUS changes

The action is implemented by extensive modifications to subchapter III of chapter 99 of the HTSUS, effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on July 24, 2026. New headings 9903.05.20–9903.05.84 impose the additional duties by country. New U.S. Note 52 to subchapter III sets the rules for application, including:

• All covered products remain subject to their normal chapter 1–97 duties plus any other applicable Chapter 99 duties (e.g., existing Section 232, other Section 301 actions), unless specifically carved out.
• The new 301 duties do not apply to goods properly entered under most Chapter 98 provisions (except 9802.00.40, .50, .60, and 9802.00.80, where the 301 applies to the foreign value-add portion).
• The duties do not displace antidumping, countervailing, or other taxes/fees.
• For goods with specific or compound duties from EU, Japan, Korea, Switzerland, or Taiwan, an ad valorem equivalent is calculated to determine whether the MFN/special rate is below or above the 10% or 12.5% thresholds for net-of-MFN application.

Exemptions and carve-outs

Annex II lists hundreds of HTS subheadings that are exempt from these new Section 301 duties. Key categories include:

• Broad raw materials and inputs: certain animal products, seeds for sowing, vegetable products (e.g., coconut coir, jute, sisal), in-quota sugar and sugar-containing products, unflavored instant coffee, fertilizer and pesticide inputs, exotic hides and leather, specific wood products (e.g., eucalyptus), vanadium oxides and hydroxides, pig iron, ferrous scrap and inputs, aluminum scrap and aluminum hydroxide, ash containing precious metals, certain battery waste and scrap.
• Industrial and high-tech inputs: certain semiconductor manufacturing equipment, specified chemicals and pharmaceutical ingredients (limited to pharmaceutical applications), and other critical inputs.
• Civil aircraft and related items: all qualifying civil aircraft, engines, parts, components, and ground flight simulators under general note 6 are exempt from the new 301 duties, regardless of whether entered under a “Free (C)” provision.
• Pharmaceuticals: specified HTS lines are exempt when used in pharmaceutical applications, regardless of “Free (K)” status.
• Used clothing and certain art/collectibles: worn clothing and other worn articles, and many Chapter 97 items (art, antiques, collections, scientific and historical specimens) are exempt.
• Products already under other trade actions: the new 301 duties do not apply to aluminum, steel, and copper articles and their derivatives already covered by Section 232/other actions; certain wood products under existing actions; medium- and heavy-duty vehicles and parts under separate actions; and semiconductor articles under 9903.79.01.
• Autos and parts: passenger vehicles, light trucks, and their parts already subject to specific auto-related Chapter 99 provisions (9903.94.xx) or import adjustment offsets are excluded from these new 301 duties.

There are also economy-specific exemptions tied to Agreements on Reciprocal Trade (ARTs) or similar arrangements. For example, certain HTS lines for products of the UK, EU, Switzerland, Malaysia, Cambodia, Guatemala, El Salvador, Argentina, Bangladesh, Taiwan, Indonesia, Ecuador, and Jordan are exempt to encourage implementation of forced-labor import prohibitions. These are implemented via headings 9903.05.96–9903.06.21 and Annex II Parts B–N.

Trade agreement carve-outs

• Canada and Mexico: Under 9903.05.93 and 9903.05.94, the additional 10% Section 301 duties do not apply to products of Canada or Mexico that are entered free of duty under USMCA (including relevant Chapter 98 and 99 USMCA provisions), regardless of whether the underlying HTS shows “S” or “S+” in the Special column.
• CAFTA-DR textiles/apparel: Under 9903.05.95 and Annex II Part O, certain textile and apparel goods that are products of Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua and entered free of duty under CAFTA-DR are exempt from the new 301 duties.

Foreign-trade zones

Any product of a covered economy that is subject to the new additional duty and admitted into a U.S. foreign-trade zone (other than goods eligible for domestic status) must be admitted in privileged foreign status as of the date the additional duty is imposed. This prevents later reclassification to avoid the 301 duty.

Effective dates and transition

• Effective: 12:01 a.m. Eastern Time on July 24, 2026, for entries for consumption or withdrawals from warehouse for consumption.
• In-transit relief: Goods loaded on the vessel and in transit on the final mode of transit before 12:01 a.m. ET July 24, 2026, and entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. ET July 28, 2026, are not subject to the new additional duties.
• A secondary HTSUS tweak (adding patented pharmaceuticals to the list of items excluded from overlapping actions) is effective for entries on or after 12:01 a.m. ET July 31, 2026.

Textile TRQs (future action)

The President directs USTR to establish, when feasible, tariff-rate quotas (TRQs) for Bangladesh, Cambodia, Indonesia, and Malaysia, with an initial 3-year duration. These TRQs will allow specified volumes of textiles and apparel, linked to those economies’ imports of U.S. cotton and textile inputs, to enter the United States free of the new Section 301 tariffs. Until those TRQs are established and effective, the applicable 10% Section 301 duty applies to the covered textile and apparel imports from those four economies. USTR will issue a separate Federal Register notice to establish the TRQs and their effective dates.

Practical implications and required actions

For importers and brokers, this is a high-impact, immediate compliance change:

• Country-of-origin screening: Any product whose origin is one of the 60 economies now potentially attracts an additional 10% or 12.5% Section 301 duty, or a net-of-MFN top-up. Systems must be updated to flag these origins and apply the correct Chapter 99 code.
• HTS classification and Chapter 99 coding: Entry filings must include the appropriate new 9903.05.xx code for the origin economy, unless the product is covered by an exemption in Annex II or a specific carve-out (e.g., civil aircraft, pharma, autos under other actions, USMCA/CAFTA-DR-eligible goods). Misclassification could result in underpayment or overpayment of duties.
• Trade agreement claims: For Canada and Mexico, ensure that qualifying USMCA claims are properly made to avoid unnecessary 301 duties. For CAFTA-DR textiles/apparel, confirm eligibility and use the correct Chapter 99 and preference indicators.
• FTZ operations: Adjust FTZ admission practices to use privileged foreign status for covered goods from these economies once the duties are in effect.
• Sourcing and pricing: The new 10–12.5% duty burden is economy-wide and not product-specific (except for exemptions). Companies heavily sourcing from China, EU, Japan, Korea, Mexico, Canada, and major textile suppliers should reassess landed cost, pricing, and potential alternative sourcing.
• Monitoring: Watch for the forthcoming TRQ notice for textiles and apparel from Bangladesh, Cambodia, Indonesia, and Malaysia, and be prepared to claim TRQ benefits when available.

Given the breadth of coverage and the clear effective date, this notice requires immediate updates to customs compliance procedures, internal controls, and commercial planning for all importers dealing with the 60 listed economies.