USTR is imposing new Section 301 tariffs (10–12.5%) on imports from 60 economies over forced labor enforcement failures.

1. What changed

USTR has completed 60 Section 301 investigations into foreign economies’ failure to impose and effectively enforce prohibitions on the importation of goods produced with forced labor. Acting at the President’s direction, USTR is imposing new additional Section 301 duties on U.S. imports from these economies. The action establishes differentiated additional duty rates (10%, 10–12.5% net of MFN, and 12.5%) and a framework for product-specific exemptions. Details, including covered products and any Chapter 99 provisions, will be set out in the Federal Register notice and accompanying fact sheet.

2. Affected products and economies

The action applies to U.S. imports from 60 investigated economies. The announcement does not list specific HTS subheadings or Chapter 99 numbers; those will be in the Federal Register notice and fact sheet. At this stage, the impact is defined by country/economy and broad product coverage, subject to exemptions.

Economy groupings and general treatment:

A. Economies subject to a 10% Section 301 duty (generally across covered products):

• Argentina
• Bangladesh
• Cambodia
• Canada
• Ecuador
• El Salvador
• Guatemala
• Honduras
• India
• Indonesia
• Jordan
• Malaysia
• Mexico
• Pakistan
• Sri Lanka
• Trinidad and Tobago
• United Kingdom

These are economies that either:

(i) impose a forced labor import prohibition;

(ii) have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade; or

(iii) have imposed a partial regime preventing importation of certain forced labor goods.

B. Economies subject to 10% or 12.5% Section 301 duties, net of MFN, on certain products:

• European Union
• Taiwan
• Japan
• Korea
• Switzerland

For these economies, only “certain products” are covered, and the applicable additional duty is 10% or 12.5% net of the MFN rate, except where otherwise exempted. The specific product lists and rates will be detailed in the Federal Register notice.

C. All other investigated economies:

All remaining economies among the 60 investigated (not listed above) are subject to a 12.5% Section 301 duty on covered imports.

Because the text provided does not specify HTS headings or subheadings, importers must consult the Federal Register notice and USTR fact sheet to identify:

• Which HTS codes are covered for each economy; and
• Any Chapter 99 provisions that must be used to declare the additional duties.

3. Rate changes

The action imposes new additional Section 301 duties on top of existing MFN (or other) duty rates. The announcement provides the following rate structures:

1) 10% additional Section 301 duty:

• Applies to covered products from: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
• This 10% is an additional ad valorem duty, in addition to the existing MFN or other applicable base rate.

2) 10% or 12.5% additional Section 301 duty, net of MFN:

• Applies to certain products of: European Union, Taiwan, Japan, Korea, and Switzerland.
• The rate is either 10% or 12.5% “net of MFN rate,” meaning the effective additional duty is calibrated relative to the MFN rate. The precise calculation method and product coverage will be specified in the Federal Register notice.

3) 12.5% additional Section 301 duty:

• Applies to all covered products from all other investigated economies not in the 10% group and not in the EU/Taiwan/Japan/Korea/Switzerland group.

The prior additional duty rate for these products was 0% (no Section 301 duty under this specific forced labor action). Existing duties (MFN, other trade remedies such as ADD/CVD, or other Section 301/232/201 measures) remain in place and are cumulative unless otherwise specified in the Federal Register notice.

4. Dates

Key dates mentioned in the background (for context):

• March 12, 2026: USTR initiated 60 Section 301 investigations on forced labor import prohibition failures.
• April 28–29, 2026: Public hearings on the investigations.
• June 2, 2026: USTR determined the acts/policies/practices of the 60 economies are unreasonable and burden or restrict U.S. commerce, making them actionable under Section 301(b).
• July 6, 2026: Deadline for public comments on proposed responsive action.
• July 7–9, 2026: Public hearings on proposed responsive action.

The announcement states that Ambassador Greer is “taking final action” today, but the specific effective date for the new tariffs (e.g., date of entry or withdrawal from warehouse for consumption) will be defined in the Federal Register notice. Compliance teams must verify:

• The exact effective date for the additional duties; and
• Any phase-in, grace periods, or retroactivity provisions.

5. Product exemptions

USTR has determined that product-specific exemptions from the new Section 301 duties are appropriate in the following categories:

(a) Raw materials where tariffs could lead to unavailability of domestic supply.

(b) Products that, if subject to these tariffs, could cause economy-wide disruptions.

(c) Products that cannot be grown or produced in sufficient quantities or at reasonable prices in the United States or obtained from other sources.

(d) Certain products of Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Jordan, Malaysia, Switzerland, Taiwan, or the United Kingdom where exemptions would:

• Encourage these economies to fulfill commitments regarding forced labor import prohibitions; or
• Encourage them to enact and effectively enforce such prohibitions.

(e) Articles for which these tariffs may not contribute substantially to eliminating the actionable acts, policies, and practices identified in the investigations.

The specific HTS codes and conditions for these exemptions will be detailed in the Federal Register notice and/or an associated product exclusion process. Importers should expect that exemptions may be implemented via:

• Specific HTS subheadings excluded from the Chapter 99 coverage; and/or
• A formal exclusion request process with case-by-case approvals.

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

Because the action directly affects U.S. import duty liability, the following steps are recommended:

A. Determine exposure by country and product

• Identify all suppliers and shipments originating in the 60 investigated economies.
• Map your import portfolio by HTS code and country of origin to determine which products may fall under the new Section 301 measures.
• Pay particular attention to imports from:
• Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, United Kingdom (likely 10% additional duty on covered products).
• European Union, Taiwan, Japan, Korea, Switzerland (10% or 12.5% net of MFN on certain products).
• All other investigated economies (12.5% additional duty on covered products).

B. Review the Federal Register notice and fact sheet

• Obtain and review the pre-publication and final Federal Register notice to identify:
• The list of covered HTS codes for each economy.
• Any Chapter 99 subheadings that must be declared to apply the additional duties.
• The precise effective date and any transitional rules.
• The detailed methodology for “net of MFN” calculations for EU, Taiwan, Japan, Korea, and Switzerland.
• Review USTR’s fact sheet for:
• Summaries of product coverage by sector.
• Clarifications on exemptions and any exclusion request process.

C. Update classification and entry processes

• Work with customs brokers to:
• Ensure correct HTS classification and country of origin are declared.
• Add the appropriate Chapter 99 numbers for the new Section 301 duties once published.
• Adjust ACE/ABI programming to calculate the additional 10% or 12.5% duties.
• Update internal tariff databases and landed cost models to reflect the new duty rates.

D. Evaluate and pursue exemptions

• Identify products that may qualify under the exemption categories (a)–(e), especially:
• Critical raw materials with limited domestic or alternative foreign supply.
• Inputs where tariffs could cause significant cost pass-through or supply chain disruption.
• Products from Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, EU, Guatemala, Indonesia, Jordan, Malaysia, Switzerland, Taiwan, or UK where exemptions could support policy objectives.
• Monitor for any formal exclusion process and prepare supporting data (supply chain mapping, cost impact, availability of alternative sources) to support potential requests.

E. Contracting and pricing

• Review existing contracts with suppliers and customers to determine who bears additional duty costs.
• Renegotiate pricing or sourcing where the new 10–12.5% duties materially affect margins.
• Consider alternative sourcing from economies not subject to these new Section 301 duties, where feasible and compliant with other trade measures.

F. Forced labor compliance alignment

• Although this action targets foreign governments’ failure to enforce forced labor import bans, it underscores U.S. focus on forced labor in supply chains.
• Align this development with existing compliance under:
• U.S. forced labor import ban (19 U.S.C. § 1307), including WROs and Findings.
• Any internal ESG or human rights due diligence programs.

7. References

The announcement references the following key documents (URLs to be obtained from USTR/FR sites):

• Pre-publication Federal Register Notice (Section 301 forced labor investigations and final action):
• Access via: https://www.federalregister.gov (search for “USTR forced labor Section 301 investigations” and the relevant date) or via USTR’s press release link.
• USTR Fact Sheet on Forced Labor Section 301 Actions:
• Access via: https://ustr.gov (search for the title “Forced Labor Section 301 Investigations Fact Sheet” or via the press release link).

Importers should download and retain these documents as part of their compliance records and use them as the authoritative source for HTS coverage, Chapter 99 numbers, and effective dates.

8. HTS metadata

The text provided does not specify any HTS headings, subheadings, or Chapter 99 numbers. All HTS metadata must therefore be obtained from the Federal Register notice and USTR fact sheet once available.

HTS codes explicitly stated in the source: []

Until those documents are reviewed, companies should not assume specific HTS coverage but should prepare for broad application of the stated additional duty rates to imports from the listed economies, subject to later-confirmed product lists and exemptions.