Effective 12:01 a.m. ET on July 24, 2026, Section 301 forced-labor duties apply to imports from 60 economies. Seventeen face a flat 10 percent, 38 face a flat 12.5 percent including China, and five reach a 10 or 12.5 percent all-in rate. USMCA and Section 232 goods are exempt.
What changed on July 24
At 12:01 a.m. Eastern time on July 24, 2026, the Office of the United States Trade Representative brought new additional duties into force under Section 301 of the Trade Act of 1974. The action is the final determination in a forced-labor investigation covering 60 trading partners, and CBP issued filing instructions the same day in CSMS number 69326983.
The duties replace the expiring 10 percent global tariff that had been running under Section 122 of the Trade Act, which expired at midnight the same night.
The mechanics are entirely different from the flat measure they replaced. Rather than one rate for everyone, CBP created 65 country-level Chapter 99 headings running from 9903.05.20 through 9903.05.84, plus 8 general exemption headings and a further set of country-specific exemption headings reaching 9903.06.21. Every affected entry now needs the correct heading, in the correct reporting position.
Summary for Canadian Shipments to the USA:
- 10% minimum duty (10% plus regular duty)
- Duty Free if Canadian origin under USMCA
- Section 232 steel and aluminum tariffs still apply
The rate tiers and all 60 economies
There are four structural groups. Two apply a flat additional duty. Two apply an all-in rate, where the Section 301 duty tops the column one rate up to a ceiling rather than stacking on top of it.
| Tier | Count | Economies | Mechanism | Rate |
|---|---|---|---|---|
| Flat 10 percent | 17 | Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, United Kingdom | Additional ad valorem duty added to the column one rate | 10% |
| All-in to 10 percent | 2 | European Union member states, Taiwan | If the column one rate is below 10 percent, a combined column one plus Section 301 rate of 10 percent applies. If it already equals or exceeds 10 percent, no additional duty is assessed. | 10% all-in |
| All-in to 12.5 percent | 3 | Japan, South Korea, Switzerland | If the column one rate is below 12.5 percent, a combined column one plus Section 301 rate of 12.5 percent applies. If it already equals or exceeds 12.5 percent, no additional duty is assessed. | 12.5% all-in |
| Flat 12.5 percent | 38 | Algeria, Angola, Australia, Bahamas, Bahrain, Brazil, Chile, China, Colombia, Costa Rica, Dominican Republic, Egypt, Guyana, Hong Kong China, 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 | Additional ad valorem duty added to the column one rate | 12.5% |
Canada and Mexico: The USMCA exemption
For Canadian exporters the headline "10 percent on Canada" is misleading read alone. Canada sits at 10 percent under heading 9903.05.29, but that heading is excepted by headings 9903.05.85 through 9903.05.93 rather than the usual 9903.05.85 through 9903.05.92. The extra heading is the point.
Heading 9903.05.93 provides that the Canada duty does not apply to products entered free of duty under the United States-Mexico-Canada Agreement, including treatment under subchapter XXIII of chapter 98 and subchapter XXII of chapter 99. Critically, it applies regardless of whether the good is entered under a provision showing "S or S plus" in the Special sub-column. Heading 9903.05.94 does the same for Mexico under note 52(h).
Other Exemptions, general and country-specific
General exemptions available to all 60 economies
Eight headings apply across every affected economy. Each is claimed on the entry, so none of them operate automatically.
| Heading | Covers |
|---|---|
9903.05.85 |
In-transit goods meeting both the July 24 loading test and the July 28 entry test |
9903.05.86 |
Articles under subdivision (b) of U.S. note 52, the general product exemption list |
9903.05.87 |
Articles under subdivision (c) of U.S. note 52, specifically named items such as seeds and tropical fruits |
9903.05.88 |
Civil aircraft, engines, parts, components, subassemblies, and ground flight simulators |
9903.05.89 |
Articles for use in pharmaceutical applications |
9903.05.90 |
Section 232 articles: aluminum, steel, copper and derivatives; passenger vehicles and light trucks and parts; medium and heavy duty vehicles and parts; wood products; semiconductor articles |
9903.05.91 |
Donations intended to relieve human suffering, such as food, clothing, and medicine |
9903.05.92 |
Informational materials, including publications, films, recordings, artworks, and news wire feeds |
Filing mechanics: sequence, Chapter 98, and FTZ
HTSUS reporting order on the entry summary line
This is the detail most likely to generate rejected entries in the first weeks, because Section 301 is reported ahead of Section 232 rather than after it. The required order is:
- Chapter 98, if applicable.
- Chapter 99 heading or headings for additional duties, if applicable.
- Trade remedies in this sequence: Section 301 first, then Section 122, then Section 232, then Section 201 duties, then Section 201 quota.
- Chapter 99 heading or headings for replacement duty or other use, such as Miscellaneous Tariff Bill provisions.
- Chapter 99 heading for other quota not covered above.
- Chapter 1 to 97 commodity classification.
The entered value is reported on the Chapter 1 to 97 line unless a Chapter 98 provision requires otherwise.
Chapter 98 treatment
The additional duties do not apply to goods properly entered under Chapter 98 where CBP agrees the provision is appropriate, with four carve-outs from that relief:
- Subheadings 9802.00.40, 9802.00.50, and 9802.00.60. The additional duty applies to the value of the repairs, alterations, or processing performed abroad.
- Heading 9802.00.80. The additional duty applies to the value of the article assembled abroad, less the cost or value of the United States products incorporated.
Frequently asked questions
How many economies face the 12.5 percent rate?
Thirty-eight economies face a flat 12.5 percent additional duty, including China, Brazil, Vietnam, Thailand, Australia, Singapore, and Israel. Japan, South Korea, and Switzerland separately reach 12.5 percent on an all-in basis, where the Section 301 duty tops up the column one rate rather than adding to it.
Does the 10 percent duty apply to all goods from Canada?
No. Heading 9903.05.93 exempts products of Canada entered free of duty under USMCA. The exemption applies regardless of whether the good is entered under a provision showing S or S plus in the Special sub-column. The 10 percent duty under heading 9903.05.29 therefore falls on Canada-origin goods that are not entered duty free under USMCA.
In what order do I report Section 301 and Section 232 on the entry summary?
Section 301 is reported first among the trade remedies
What is the in-transit exception and how do I claim it?
The in-transit exception is claimed under Chapter 99 heading 9903.05.85. Goods must have been loaded at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern time on July 24, 2026, and must be entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. eastern time on July 28, 2026. Both conditions are required.
Can I admit affected goods into a foreign trade zone to defer the duty?
Only as privileged foreign status under 19 CFR 146.41, unless the goods qualify for domestic status under 19 CFR 146.43. Privileged foreign status fixes the tariff treatment at admission, so admitting goods to a foreign trade zone does not avoid the Section 301 forced-labor duty.
Are Section 232 goods also charged the forced-labor duty?
No. Heading 9903.05.90 exempts aluminum, steel, and copper articles and their derivatives, passenger vehicles and light trucks and their parts, medium and heavy duty vehicles and their parts, wood products, and semiconductor articles. Pharmaceutical goods are exempt separately under heading 9903.05.89. Antidumping and countervailing duties continue to apply regardless.
Sources
- U.S. Customs and Border Protection, CSMS number 69326983, Guidance: Section 301 Forced Labor Import Duties, including the Chapter 99 heading schedule, general and country-specific exemptions, Chapter 98 treatment, foreign trade zone requirements, and the HTSUS reporting sequence.
- Office of the United States Trade Representative, Section 301 Forced Labor Notice of Action, announced July 23, 2026.
- Harmonized Tariff Schedule of the United States, U.S. note 52 to subchapter III of chapter 99, and general note 29(d)(v).
- 19 CFR 146.41 and 19 CFR 146.43 on privileged foreign and domestic status in foreign trade zones.
This article is general information for Canadian and United States importers and exporters. It is not legal advice and it is not a substitute for a binding ruling. Confirm the treatment of your specific goods with your customs broker before entry.
