New Section 301 Tariffs Effective July 24, 2026

On the evening of July 23, 2026, U.S. Trade Representative Jamieson Greer announced the implementation of new Section 301 tariffs, effective 12:01 a.m. EST on July 24, 2026. At the same time, the temporary 10% Section 122 tariffs expired. The new Section 301 measures are the result of an investigation into the forced labor enforcement policies of 60 economies.

Section 301 Tariff Rates

Based on the findings of the investigation, the following tariff rates will apply:

12.5% Section 301 Tariff

The investigation determined that the following economies have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor:

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

Imports from these economies will be subject to a 12.5% Section 301 tariff.

10% Section 301 Tariff

The following economies were determined to have failed to effectively enforce a prohibition on the importation of goods produced with forced labor:

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

Imports from these economies will be subject to a 10% Section 301 tariff.

European Union and Taiwan

For imports from the European Union and Taiwan, the Section 301 tariff will be adjusted so that the combined Most-Favored-Nation (MFN) duty rate plus the Section 301 tariff equals 10%.

For example:

• If the MFN duty rate is 3%, the applicable Section 301 tariff will be 7%, resulting in a combined rate of 10%.
• If the MFN duty rate is 10% or greater, no additional Section 301 tariff will apply.

Tariff-Rate Quotas (TRQs)

The announcement also directs the U.S. Trade Representative to establish three-year Tariff-Rate Quotas (TRQs) for Bangladesh, Cambodia, Indonesia, and Malaysia as soon as administratively feasible.

The TRQs are intended to encourage the use of U.S.-origin textile goods and cotton by allowing specified quantities of qualifying textile and apparel products to enter the United States free of the applicable Section 301 tariffs.

Until these TRQs are established and implemented:

• Imports of covered textile and apparel products from Bangladesh, Cambodia, Indonesia, and Malaysia will remain subject to the applicable 10% Section 301 tariff.
• The Harmonized Tariff Schedule of the United States (HTSUS) will be updated as necessary, and the U.S. Trade Representative will publish a Federal Register notice announcing the TRQ implementation and effective dates.

Key Exemptions

As with previous tariff actions, several important exemptions apply, including:

• Goods in transit: Merchandise loaded aboard the final vessel or other final mode of transportation before 12:01 a.m. EST on July 24, 2026, and entered for consumption (or withdrawn from warehouse for consumption) before 12:01 a.m. EST on July 28, 2026, will not be subject to the new Section 301 tariffs.
• Section 232 products: Products subject to Section 232 duties (including qualifying aluminum, steel, copper, vehicles, and semiconductors) will not have the Section 301 tariffs applied in addition to those duties.
• Articles of civil aircraft and their components.
• Articles imported as donations.
• Informational materials.
• Various product-specific exclusions identified in the final action.

Additional Information

A complete list of the affected tariff classifications, exclusions, and implementation details is available beginning on page 73 of the following link: FLIP 301 Investigation Final Action FRN 7-23-26 FINAL.

If you have questions regarding how these changes may affect your imports, please contact our Compliance Team for assistance in reviewing your products and determining the applicable duty treatment.

John Boomhover
Director of Compliance & Customs Services
CV International, Inc.