On July 23, 2026, the Office of the United States Trade Representative (USTR) issued a final announcement to impose differentiated additional Section 301 tariffs on goods exported to the U.S. from 60 global trading partners under Section 301 of the Trade Act of 1974, on the grounds of "failure to establish or effectively enforce import bans on forced labor products". The measures officially take effect at 00:01 U.S. Eastern Time on July 24, 2026, replacing the 10% temporary import tariffs under Section 122 expiring on the same day.

The measures follow two rounds of public hearings, with over 2,100 written public comments received in total. This latest arrangement marks the U.S. shift to Section 301 as its core tariff tool, and will exert a direct impact on global trade flows and supply chain layouts.

The U.S. classifies the trading partners into three tiers based on the development of their relevant regulatory regimes. The Chinese mainland and Hong Kong SAR are placed in the highest 12.5% tariff tier.

Tier 1: Flat 10% Additional Tariff (17 Economies)

The U.S. holds that these economies have established certain import restriction regimes on forced-labor goods, or have committed to improving relevant systems during the investigation, hence the 10% additional tariff rate applies.Including: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, the United Kingdom.

Tier 2: Special Capped Tariff Calculation (5 Economies)

A top-up mechanism applies, where the combined rate of MFN (Most Favored Nation) duty plus Section 301 additional tariff is capped at a set total level:

1.European Union and China's Taiwan region: If the original MFN duty rate is below 10%, an additional Section 301 tariff will be levied to bring the total combined rate up to 10%. No additional tariff will be imposed if the original MFN rate is 10% or higher.

2.Japan, South Korea and Switzerland: If the original MFN duty rate is below 12.5%, an additional Section 301 tariff will be levied to bring the total combined rate up to 12.5%. No additional tariff will be imposed if the original MFN rate is 12.5% or higher.

Tier 3: Flat 12.5% Additional Tariff (38 Economies – Key Focus)

Applicable to economies deemed by the U.S. as having failed to establish or effectively enforce relevant import bans, including:Algeria, Angola, Australia, the Bahamas, Bahrain, Brazil, Chile, Chinese mainland, Colombia, Costa Rica, the Dominican Republic, Egypt, Guyana, Hong Kong SAR of China, Iraq, Israel, Kazakhstan, Kuwait, Libya, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Thailand, Turkey, the United Arab Emirates, Uruguay, Venezuela, Vietnam.

The newly added Section 301 tariffs are levied in addition to the existing Section 301 tariffs on Chinese goods, and do not replace the original tax burden. Products already subject to Section 232 duties are, as a general rule, not subject to these additional Section 301 duties to avoid duplicate taxation.

Exemption Rules for In-Transit GoodsIn-transit goods that meet both of the following conditions are exempt from the newly added Section 301 tariffs:

Goods have been fully loaded on board at the port of loading and entered the final transportation phase to the U.S. before 00:01 U.S. Eastern Time on July 24 (12:01 Beijing Time on July 24);

U.S. import entry filing is completed, or goods are withdrawn from bonded warehouses for domestic consumption, before 00:01 U.S. Eastern Time on July 28 (12:01 Beijing Time on July 28).

Even if goods have already arrived in the U.S., they will not be eligible for the exemption if the import entry filing or bonded warehouse withdrawal is not completed within the specified timeframe.

Scope of Exempted ProductsThe announcement specifies that the following categories are exempt from this round of additional tariffs:

Selected agricultural products (beef, coffee, spices, fruits, etc.), pharmaceuticals, vaccines, vitamins

Certain chemicals, certain polymers, rubber, wood, fertilizers, mineral products, paper products

Aircraft and their parts, certain electronic products and components, optical instruments

Gold, silver and other precious metals

Steel, aluminum, copper and their derivatives, automobiles and auto parts under Section 232 tariffs

Compliant duty-free goods under the United States-Mexico-Canada Agreement (USMCA) and the Central America Free Trade Agreement

Donated books, personal baggage, information materials, etc.

In addition, the U.S. will establish a 3-year Tariff Rate Quota (TRQ) mechanism for textiles from Bangladesh, Cambodia, Indonesia and Malaysia. Pending the official launch of the TRQ, relevant textile products will be temporarily levied at 10%.

This tariff policy has officially taken effect. U.S.-bound export enterprises are advised to sort out pending orders and in-transit goods as soon as possible, verify product exemption eligibility, recalculate costs and pricing, and avoid retroactive tax risks in advance.Hanyue International will continue to closely follow policy updates, release the latest tariff details and exemption lists, and assist enterprises in assessing tariff impacts, verifying HS code applicability, and optimizing supply chain layouts and logistics solutions. For HS code verification or customized logistics response plans, please contact our customer service team.