The news: The US has imposed Section 301 tariffs of 10% to 12.5% on imports from 60 trading partners covering 99.4% of US imports. The move cites each economy’s failure to ban goods made with forced labor.
The duties took effect at 12:01 a.m. Eastern on July 24, the same moment the temporary Section 122 global 10% tariff expired at its 150-day legal cap.
The rates: The Federal Register notice sorts the 60 economies into three groups.
10% on 17 economies that ban forced-labor imports, committed to a ban through a trade agreement, or run a partial regime: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the UK.
A capped rate for five: EU and Taiwan products pay a combined MFN-plus-301 duty of no more than 10%; Japan, South Korea, and Switzerland are capped at 12.5%. Where a product's MFN rate already meets the cap, the new duty is zero.
12.5% on all other investigated economies, including China.
The mechanics: Goods loaded and already in their final transit before 12:01 a.m. on July 24 are exempt if they enter before July 28.
Other exemptions cover products already subject to Section 232 tariffs, informational materials, donations, and accompanied baggage, plus an annex of raw materials and products in short domestic supply. USTR also plans tariff-rate quotas for Bangladesh, Cambodia, Indonesia, and Malaysia, tied to each economy’s use of US inputs.
USTR also plans tariff rate quotas for Bangladesh, Cambodia, Indonesia, and Malaysia. These will be tied to each economy’s use of US inputs.
The basis: The action closes investigations opened in March. The review included two rounds of public hearings and drew more than 2,100 comments.
“Decades of moral suasion have not eradicated forced labor,” Trade Representative Jamieson Greer said.
Unlike the emergency authority behind the expired tariff, Section 301 has no expiration date.
What's next: The rate structure rewards adoption. Economies that enact and enforce forced-labor import bans qualify for the lower tier. USTR noted that some economies imposed bans or made commitments through trade agreements between the June proposal and the final action.
