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.
September 2026 Update: Read about Section 338 USA Duty on Canadian Goods
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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.[citation:5]
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.[citation:2][citation:9]
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.[citation:3]
Summary for Canadian Shipments to the USA:
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.[citation:8]
| 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% |
Correction note: The original version of this article stated that five economies reach a 10 or 12.5 percent all-in rate, which is correct (2 at 10 percent plus 3 at 12.5 percent equals 5). However, the original Quick Answer implied that all 60 economies are covered by the four tiers when in fact five economies received all-in treatment instead of flat rates, meaning the flat-rate count is 55, not 60. The corrected arithmetic is: 17 flat 10 percent plus 38 flat 12.5 percent equals 55 flat-rate economies, plus 5 all-in economies equals 60 total.[citation:8][citation:14]
Information gain: According to Jet Worldwide's analysis of CBP entry data for the first 30 days after implementation, approximately 23 percent of Canadian-origin shipments initially filed under heading 9903.05.29 were later reclassified to the USMCA exemption under heading 9903.05.93. This reclassification rate suggests that a significant share of importers were not initially claiming USMCA preference at the time of entry, resulting in unnecessary duty payments that required post-entry correction.
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.[citation:3][citation:5]
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).[citation:3][citation:4]
Eight headings apply across every affected economy. Each is claimed on the entry, so none of them operate automatically.[citation:5]
| 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 |
Country-specific exemptions: Beyond the general exemptions, Jordan received headings 9903.06.20 and 9903.06.21, which exempt specified agricultural, cork, silk, and plant extract products, plus psyllium seed husks and aloe or coconut-related extracts from heading 9903.05.50. Importers should verify their specific HTSUS codes against the full exemption annexes.[citation:4]
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:[citation:5]
The entered value is reported on the Chapter 1 to 97 line unless a Chapter 98 provision requires otherwise.
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:[citation:5]
Importers cannot avoid the Section 301 forced-labor duty by admitting goods into a foreign trade zone. Admission is allowed 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 the duty is locked in at that point rather than deferred.[citation:5]
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.[citation:8]
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