Hello Customers, Colleagues, and Friends,
On July 23, 2026, the Office of the United States Trade Representative (USTR) announced the implementation of new Section 301 tariffs on products from approximately 60 countries as part of the Administration’s efforts to encourage trading partners to adopt and effectively enforce prohibitions on forced labor. The additional duties become effective for goods entered for consumption, or withdrawn from warehouse for consumption, at or after 12:01 a.m. ET on July 24, 2026. A limited in-transit provision applies to qualifying cargo already in transit ON AN OCEAN VESSEL ON IT’S LAST LEG OF TRANSIT TO THE USA prior to the effective date.
What’s Changing?
The new Section 301 action establishes two tariff rates based on a country’s forced labor enforcement policies:
- 10% Additional Duty – Countries that have adopted and are effectively enforcing forced labor import prohibitions.
- 12.5% Additional Duty – Countries determined not to have adopted or effectively enforced comparable prohibitions.
*Unlike previous Section 301 actions that primarily targeted products from China, this action applies to imports from approximately 60 countries, with applicability determined by country of origin and HTS classification.
Products Covered
The action affects a broad range of products across Chapters 1–97 of the Harmonized Tariff Schedule. Some exclusions also apply, including specific products, pharmaceutical products, civil aircraft, and other designated HTS classifications.
What This Means for You
- Review imported products to determine whether they fall within the affected HTS classifications.
- Verify the country of origin for all impacted merchandise.
- Evaluate the potential cost impact of the new 10% or 12.5% additional duties.
- Expect either a continued 10% tariff rate or increased 12% tariff rate from the now expired 10% Section 122 tariff
Krenz & Hannan International is actively monitoring CBP guidance, Federal Register notices, and CSMS messages related to these developments. We expect additional information to continue to be released as CBPdevelops implementation procedures.
Sincerely, Your friends at Krenz & Hannan International