Skip to main content

US tariff update — 24 July 2026: Section 301 forced-labor tariffs on imports from 60 economies

What the new Section 301 forced-labor tariffs mean for brands shipping to the US — rates by market, exemptions, and how to check your landed costs.

J
Written by Jemma O'Leary

On 23 July 2026, the US Trade Representative (USTR) imposed new additional tariffs of 10–12.5% on imports from 60 economies under Section 301 of the Trade Act of 1974. The stated basis is those countries' failure to impose and effectively enforce a ban on importing goods produced with forced labor. The tariffs took effect at 12:01am ET on 24 July 2026.

Key facts

Tariffs: 10% or 12.5%, depending on market. Effective: 24 July 2026, 12:01am ET. Scope: 60 economies covering 99.4% of US imports. These are additive — they apply on top of existing MFN rates and any prior tariffs already in place.


What changed

USTR initiated 60 separate Section 301 investigations in March 2026. The final action was signed on 23 July 2026 and took effect immediately.

The tariffs are additive. Unless a specific product exemption applies, they layer on top of existing duties — Most-Favored-Nation (MFN) base rates, plus any prior country- or product-specific tariffs already in place. Goods already subject to Section 232 tariffs (steel and aluminum products) are excluded from this action.


Affected markets and rates

10% — countries that have adopted a forced-labor import prohibition, or committed to one through a trade agreement with the US:

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

10–12.5% (product-specific, calculated against existing MFN rate — not a flat add-on):

European Union (all 27 member states), Taiwan, Japan, South Korea, Switzerland

The EU rate applies as a bloc, covering all 27 member states: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

12.5% — all other covered economies:

Algeria, Angola, Australia, The Bahamas, Bahrain, Brazil, Chile, China, Colombia, Costa Rica, Dominican Republic, Egypt, Guyana, Hong Kong, Iraq, Israel, Kazakhstan, Kuwait, Libya, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Thailand, Türkiye, United Arab Emirates, Uruguay, Venezuela, Vietnam


Exemptions

Exemptions exist for certain categories of goods, including:

  • Informational materials, donations, and accompanied baggage

  • Goods already subject to Section 232 tariffs (steel and aluminum products)

  • Certain raw materials where domestic supply is insufficient

  • Products where applying the tariff could cause economy-wide disruption

  • Goods that cannot be sourced domestically in sufficient quantities

Exemptions are product/HTS-code specific — there is no blanket exemption by industry or product type. To check whether a specific SKU is exempt, verify against the Federal Register annex. The full exemption list is in the official Federal Register notice.


De minimis

There is no new de minimis impact from this action. The US $800 de minimis exemption was suspended indefinitely in June 2026 — that remains unchanged.


Checking your landed costs

To check how the new rates affect your specific products, FedEx and DHL Express offer free landed cost tools:

Both require your product's HS code and declared value. For lane-specific guidance across your full product range, contact your Swap account manager.


Official resources

Did this answer your question?