Section 301 tariffs 2026: the 60-country forced-labor probe
On June 2, 2026 the US Trade Representative proposed extra import duties of 10% or 12.5% on goods from 60 economies under a new Section 301 investigation into forced labor. India, Vietnam, Japan, and roughly 40 others face the higher 12.5% rate. Here is what importers need to know.
Current status (as of July 14, 2026)
- Proposed, not yet in effect. USTR issued determinations and proposed responsive actions on June 2, 2026.
- Public comment closed July 6; hearing held July 7, 2026.
- Final notice pending. Implementation details and the entry-into-force date will appear in a final Federal Register notice that had not been published as of this update.
What this investigation is
Section 301 of the Trade Act of 1974 lets USTR act when a foreign government's behavior is "unreasonable" and burdens US commerce. In this case USTR investigated whether 60 economies failed to impose and effectively enforcea prohibition on importing goods made with forced labor. On June 2, 2026 USTR determined that all 60 economies' acts, policies, and practices are actionable under Section 301(b), and proposed an additional ad valorem tariff as the remedy.
This is separate from, and broader than, the long-running Section 301 tariffs on China. Those target specific Chinese trade practices and apply by HTS-code list. This one is country-wide — it applies to imports from each listed economy regardless of product, subject to exceptions.
Which countries, and at what rate
USTR assigned each economy either 10% or 12.5% based on how far it had gotten toward an enforced forced-labor import ban. The lists below come from USTR's June 2, 2026 determinations.
12.5% — failed to impose and effectively enforce a prohibition
These are the countries most importers are asking about. Many are major sourcing origins:
10% — ban exists but is not enforced, or partial commitments
Some economies appear under more than one USTR determination rationale (for example, a country that both has a ban it does not enforce and made a reciprocal-trade commitment). The final notice will resolve which single rate applies.
What is exempt
USTR proposed several broad carve-outs. If your product falls in one of these, the 10%/12.5% would not apply even if your origin country is on the list:
| Exception | Covers |
|---|---|
| Section 232 goods | Steel, aluminum, copper, pharmaceuticals, wood products, passenger vehicles & parts, trucks & parts. (Semis, critical minerals, aircraft and others under consideration would join if Section 232 is extended.) |
| USMCA-qualifying | Goods from Canada or Mexico that meet USMCA rules of origin. |
| CAFTA-DR textiles | Certain apparel/textiles from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua under the yarn-forward rule. |
| Annex A list | Identical to the Section 122 exclusions: selected food & agriculture, energy, raw materials not available in sufficient US quantities, civil aircraft & parts. |
| De minimis / personal | Informational materials, donations, accompanied baggage. |
How these tariffs stack
The default rule is that tariffs stack. A single shipment from a 12.5% country can carry several layers of duty at once. Importers who plan only for the first two layers get caught by the rest.
| Layer | Applies when | Rate |
|---|---|---|
| 1. Normal (column 1) duty | Always — by HTS code | 0% – 25% |
| 2. Existing Section 301 | China-origin, by HTS list | 7.5% – 100% |
| 3. New §301 forced-labor (2026) | 60 economies, country-wide | 10% or 12.5% |
| 4. AD/CVD | Active order on your HTS + country | 0% – 500%+ |
| 5. MPF + HMF | Always | ~0.35% + 0.125% |
The only explicit no-stacking rule in USTR's notice: goods already under Section 232 tariffs are exempt from layer 3. Otherwise, absent further guidance, all layers add up.
A worked example: Vietnam origin
Suppose you import a product from Vietnam under an HTS code with a 5% normal duty, no Section 301 China tariff (because it is not from China), and no active AD/CVD order. Once the proposed 12.5% takes effect, your effective duty rate jumps from 5% to 17.5% before MPF/HMF — a 3.5× increase on the duty line. On $50,000 of goods that is roughly $6,250 more in duty than you may have quoted the customer.
Now add an active AD/CVD order on the same HTS code and the math gets worse quickly. This is why importers want the rate before they quote, not after the goods arrive.
See your HTS code's current duty + AD/CVD exposure
Enter an HTS code to check the base duty and any active anti-dumping or countervailing orders. Then add the proposed 10% or 12.5% if your origin country is on the list above.
Calculate landed cost →Common questions
Are the Section 301 forced-labor tariffs in effect yet?
Not as of this page's last update. On June 2, 2026 USTR issued its determinations and proposed responsive actions — a 10% or 12.5% additional tariff on the 60 investigated economies — and opened a public comment period through July 6, 2026 with a hearing on July 7, 2026. The final notice with implementation details and entry-into-force dates had not been published yet. Treat the rates as proposed, not final, until USTR issues the final action.
What is the difference between 10% and 12.5% countries?
USTR grouped countries by how much progress each had made toward banning forced-labor imports. Countries hit with 10% either have a forced-labor import ban but do not effectively enforce it (Canada, EU, Mexico, Indonesia, Pakistan), made commitments under Agreements on Reciprocal Trade (Bangladesh, Cambodia, Malaysia, Taiwan, others), or have a partial regime (United Kingdom). Countries hit with 12.5% — including India, Vietnam, Japan, South Korea, Thailand, and Türkiye — were determined to have failed to impose and effectively enforce a forced-labor import prohibition.
Do these Section 301 tariffs stack on top of existing tariffs?
By default, yes. Unless USTR says otherwise, additional duties stack on top of normal HTS duty, existing Section 301 China tariffs, and anti-dumping/countervailing duties. The one stated exception is that goods already subject to Section 232 tariffs (steel, aluminum, copper, autos, and others) are exempt from this new Section 301 action. Importers sourcing from a 12.5% country that also has an active AD/CVD order could see three or four layers of duty on one shipment.
Which products are exempt from the proposed tariffs?
USTR proposed several broad exceptions: informational materials, donations, and accompanied baggage; goods already subject to Section 232 tariffs; USMCA-qualifying goods; certain CAFTA-DR textiles and apparel; and an Annex A exclusions list identical to the one used for the 10% global Section 122 tariff (covering selected food and agriculture, energy, raw materials not available in sufficient US quantities, and civil aircraft). The technical details of how each exception works were not yet final.
How is this different from the older Section 301 China tariffs?
The long-running Section 301 China tariffs target specific unfair trade practices by China and apply only to goods from China, listed by HTS code. This 2026 investigation targets the failure to prohibit forced-labor imports and applies to 60 economies regardless of product list — it is a country-wide ad valorem duty, not a product-specific list. Both can apply to the same China-origin shipment and stack.
How do I check whether my product is affected?
Because these proposed tariffs are country-wide rather than product-specific, the key question is your country of origin, not your HTS code. But the total landed cost also depends on whatever normal duty, existing Section 301, and AD/CVD already apply to your HTS code. You can look up your HTS code on CVDar to see the base duty and any active AD/CVD orders, then add the proposed 10% or 12.5% if your origin country is on the list.
Sources & further reading
- USTR press release: initiation of Section 301 investigations (March 2026)
- Federal Register: Section 301 initiation notice (Federal Register, March 17, 2026)
- White & Case: USTR proposes 10% to 12.5% tariffs (June 5, 2026)
- KPMG: USTR findings and proposed Section 301 tariffs (June 3, 2026)
- USTR: Section 301 Investigations (official status page)