As Section 122 (10%) comes to an end at 12:01 am ET on July 24, 2026, a new tariff action, Section 301 on Forced Labor, begins.
The U.S. Trade Representative announced the new tariffs on July 23. The tariff action impacts goods from 60 economies around the globe. Most products from those origins will face an additional duty rate of either 10% or 12.5%. The EU, Japan, Korea, Switzerland, and Taiwan each have a combination rate that includes the Most-Favored-Nation (MFN) rate and the Section 301 duty as a flat rate. General and economy-specific exemptions are available to importers.
Details
Effective Date
Goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on July 24, 2026.
Additional Duty Rates
Each country (or economy) has its own additional Harmonized Tariff Schedule (HTS) number. The tariffs apply to all goods of a country unless exempt.
*Note, the EU, Japan, Korea, Switzerland, and Taiwan have threshold or combined-rate treatment rather than a flat additional duty rate.
In-Depth Look at Japan
9903.05.48: Articles the product of Japan, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 equal to or greater than 12.5 percent, will not be assessed an additional ad valorem rate of duty.
9903.05.49: Articles the product of Japan, with an ad valorem (or ad valorem equivalent) rate of duty under column 1 less than 12.5 percent, will be assessed a combined column one and Section 301 duty rate of 12.5%.
Example: HTS 8479.89.9597 has a column 1 duty rate of 2.5%. Since the rate is less than 12.5%, HTS 9903.05.49 for a flat 12.5% will apply. This includes the column 1 duty rate and Section 301 duty rate.
Exemptions
Importers have access to general exemptions that apply to goods from all countries and economies. Also, there are economy-specific exemptions.
General Exemptions
9903.05.85 – In-Transit Exemption
Articles that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. eastern time on July 24, 2026; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern time on July 28, 2026.
9903.05.86 – HTS Exemption List (b)
Articles provided for in subdivision (b) of U.S. note 52 to this subchapter. Refer to 9903.05.86 on the Forced Labor HTS List provided by U.S. Customs.
9903.05.87 – HTS Exemption List (c)
Articles provided for in subdivision (c) of U.S. note 52 to this subchapter. Refer to 9903.05.87 on the Forced Labor HTS List provided by U.S. Customs.
9903.05.88 – Civil Aircraft and Parts
Articles of civil aircraft (all aircraft other than military aircraft); their engines, parts and components; their other parts, components and subassemblies; and ground flight simulators and their parts and components, as provided for in subdivision (d) of U.S. note 52 to this subchapter. Refer to 9903.05.88 on the Forced Labor HTS List provided by U.S. Customs.
9903.05.89 – Pharma-Related
Articles for use in pharmaceutical applications, as provided for in subdivision (e) of U.S. note 52 to this subchapter. Refer to 9903.05.89 on the Forced Labor HTS List provided by U.S. Customs.
9903.05.90 – Section 232
Articles of aluminum, of steel, or of copper or derivative aluminum or steel articles; passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks; parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks; medium- and heavy-duty vehicles; parts of medium- and heavy-duty vehicles; wood products; and semiconductor articles, as provided in subdivision (f) of U.S. note 52 to this subchapter. Refer to 9903.05.90 on the Forced Labor HTS List provided by U.S. Customs.
9903.05.91 – Donations
Articles that are donations by persons subject to the jurisdiction of the United States, such as food, clothing and medicine, intended to be used to relieve human suffering.
9903.05.92 – Info Materials
Articles that are informational materials, including but not limited to publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks and news wire feeds.
The additional duties imposed by headings 9903.05.20–9903.05.84 shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of U.S. Customs and Border Protection (“CBP”), and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under subheadings 9802.00.40, 9802.00.50 or 9802.00.60 or heading 9802.00.80. For goods entered under subheadings 9802.00.40, 9802.00.50 and 9802.00.60, the additional duties apply to the value of repairs, alterations or processing performed, as described in the applicable subheading. For goods entered under heading 9802.00.80, the additional duties apply to the value of the article assembled abroad, less the cost or value of such products of the United States, as described.
Foreign Trade Zone
Any product of Section 301 Forced Labor that is subject to the additional duty imposed by this action, and that is admitted into a U.S. foreign trade zone, except any product that is eligible for admission under “domestic status” as defined in 19 C.F.R. 146.43, only may be admitted as “privileged foreign status,” as defined in 19 C.F.R. 146.41, effective as of the date that the additional duty is imposed.
FAQ
Does this Section 301 action replace Section 301 China?
No. Section 301 China is a separate action and continues to be active. Products made in China may be subject to both Section 301 China tariffs and this new Section 301 tariff action and any other applicable tariffs.
Can the In-Transit exemption be used for air shipments?
No. The in-transit exemption is specifically for shipments arriving by vessel into the U.S.
