The Office of the U.S. Trade Representative (USTR) has just announced its final responsive action in the Section 301 investigations examining whether 60 U.S. trading partners have failed to prohibit and effectively enforce bans on the importation of goods produced with forced labor.
Under the final determination, the United States will impose additional Section 301 duties on imports from the 60 investigated economies.
The final tariff structure generally follows:
10% additional duties on imports from countries that have enacted meaningful forced labor import prohibitions but whose enforcement was determined to be inadequate.
12.5% additional duties on imports from countries that USTR concluded lack meaningful legal prohibitions or effective enforcement mechanisms.
In some cases, the Section 301 duties imposed will be offset by the applicable MFN duty rate for the commodity under the HTSUS. For example, merchandise from Japan will be subject to a ceiling rate of 12.5% when the Section 301 rate is compared against the commodity’s base MFN rate. If the base MFN rate for the commodity exceeds 12.5%, then no Section 301 tariffs are applied.
In other cases, the Section 301 rate will apply on top of the commodity’s MFN rate (e.g. China). For each country’s rate, please consult the Federal Register Notice and this table.
According to USTR, no investigated country currently satisfies the standard necessary to avoid additional duties entirely. Some countries, however, received the lower 10% rate based upon legislative reforms or commitments made during the investigation.
Consistent with the proposal issued in June, the new duties do not apply to every imported product. Numerous products remain excluded, including categories already subject to separate national security tariff programs and certain energy, agricultural, fertilizer, and other specifically exempted products. Importers should carefully review the Federal Register notice to determine whether products remain exempt.
This represents the first broad-based use of Section 301 to address alleged failures by foreign governments to prevent trade in goods produced with forced labor. It provides the Administration with a more durable statutory basis for tariffs than the temporary Section 122 measures and IEEPA tariffs that were previously invalidated.
The action shifts U.S. forced labor policy beyond importer-specific enforcement tools such as the Uyghur Forced Labor Prevention Act (UFLPA) and CBP Withhold Release Orders by imposing country-wide tariff remedies.
Importers should expect continued emphasis on supply chain due diligence and forced labor compliance, as tariff exposure will now exist alongside existing UFLPA enforcement.
Companies importing products from affected countries should promptly:
Determine whether their imported products are covered by the new Section 301 duties.
Confirm the rate structure based on the commodity MFN rate and country.
Review sourcing strategies and evaluate potential tariff exposure.
Confirm whether any product-specific exclusions apply.
Continue maintaining robust forced labor due diligence and supplier documentation, as the new tariffs supplement—not replace—existing UFLPA and CBP enforcement.
U.S. Customs and Border Protection has issued guidance on implementation in advance of July 24th under CSMS 69326983.
Should you have any questions concerning coverage, rates, and handling, please reach out to one of our trade professionals listed here.