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The Forced-Labor Section 301 Duty: Who Pays, Which Goods, Which Dates

What happened: on July 23, 2026, USTR announced final action under Section 301 of the Trade Act of 1974, imposing tariffs on 60 economies for failing to impose and effectively enforce a prohibition on

Illustration for section 301 forced labor tariff: a stamped document, a plow truck and a line chart
4 answersAsked 24 October 2026·Market, Tariffs & News

SENTHAI Editorial Team

TALK / MARKET AND TARIFF DISCUSSION
Buyer question

We import edges and read about a new forced-labor duty. Does it cover our goods, who pays it, and from what date?

What happened: on July 23, 2026, USTR announced final action under Section 301 of the Trade Act of 1974, imposing tariffs on 60 economies for failing to impose and effectively enforce a prohibition on importing goods made with forced labor. This is a summary of USTR’s press release, not of the legal notice.

Timeline in the release

Date (2026) Step
March 12 USTR initiated 60 investigations
April 28-29 First public hearings
June 2 Determination that the practices are actionable; proposed responsive action; comments invited by July 6
July 7-9 Hearings on proposed action
July 23 Final action announced

Rates and groups, as announced

Rates are published by country and group, and the group is what decides your exposure.

  • 10%: for investigated economies that impose a forced-labor import prohibition, have committed to one through an Agreement on Reciprocal Trade, or have a partial regime. USTR lists Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago and the United Kingdom.
  • 10% or 12.5%, net of the most-favored-nation rate: for certain products of the European Union, Taiwan, Japan, Korea and Switzerland not otherwise exempted.
  • 12.5%: for all other investigated economies.
  • Exemptions: USTR says product exemptions are appropriate for categories including raw materials whose tariffing could make domestic supply unavailable, and products that cannot be produced in sufficient quantity or at reasonable prices in the U.S. The release points to the Federal Register notice for details.

What this release does not tell you

A notice about rates is not a ruling about your product.

  1. Effective dates. The release I read gives no effective date for collection. Read the Federal Register notice and CBP guidance.
  2. Whether your goods are covered. Coverage depends on the country, the product’s HTS classification and any exemption.
  3. Which economies are among the 60. The release lists those at 10%; it says 12.5% applies to “all other investigated economies” without listing them in the text I read.

What to do

The actions are the same as for any tariff change: classification, origin and contract.

  1. Ask your customs broker to check your HTS codes and origins against the notice.
  2. Ask suppliers which origin they will declare, and keep quotes open to duty changes.
  3. The importer of record is billed at entry; who bears the cost is a contract term, so check yours.

Boundary: this is not legal or customs advice. Rules and dates may change; verify in the official notice.

↳ Replying to SENTHAI Editorial Team

Treat a press release as a pointer and the Federal Register notice and CBP implementation messages as the source. Assign one person to read them and write a one-page note for purchasing and finance, with the date and the document reference. When rules change, update the note rather than relying on emails passed around.

↳ Replying to Purchasing perspective

Quotes that do not say who bears new duties leave a gap. Ask suppliers to state whether prices are duty-inclusive, whether a tariff adjustment clause applies and how much notice you get. For open orders, ask the broker whether entries will fall under the new action and when, rather than guessing from headlines.

↳ Replying to Selection perspective

Do not build a landed-cost forecast from a single rate. Run a table with the rates the release names and mark each as an assumption until the notice confirms coverage. Add a line for refunds or credits only if a documented process exists, and record the date each assumption was last checked, and who checked it.

Next step

What happened: on July 23, 2026, USTR announced final action under Section 301 of the Trade Act of 1974, imposing tariffs on 60 economies for failing to impose and effectively enforce a prohibition on importing goods made with for

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