The Office of the U.S. Trade Representative has announced that additional tariffs of 10 or 12.5 percent will be imposed on imports from 86 countries starting July 24 following a Section 301 determination that they have failed to impose or effectively enforce prohibitions on imports of goods made with forced labor.
It should be noted that at the same time these tariffs were imposed, the 10 percent Section 122 tariff on all virtually imports from all countries expired.
Tariff Rates
USTR is imposing the following Section 301 tariffs, which the agency said will affect 99.4 percent of all U.S. imports.
- 10 percent on imports from Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom (USTR states that these countries impose a forced labor prohibition, have committed to do so under an agreement on reciprocal trade with the U.S., or have imposed a partial regime with the effect of preventing imports of forced labor goods)
- for products of the European Union (which has 27 member countries) or Taiwan, if the product’s most-favored-nation duty rate is less than 10 percent, a section 301 tariff such that the sum of the two is 10 percent, and if the MFN duty rate is 10 percent or more, a section 301 tariff of zero
- for products of Japan, South Korea, or Switzerland, if the product’s MFN duty rate is less than 12.5 percent, a section 301 tariff such that the sum of the two is 12.5 percent, and if the MFN duty rate is 12.5 percent or more, a section 301 tariff of zero
- 12.5 percent on imports from Algeria, Angola, Australia, the Bahamas, Bahrain, Brazil, Chile, China, Colombia, Costa Rica, Dominican Republic, Egypt, Guyana, Hong Kong, Iraq, Israel,
Kazakhstan, Kuwait, Libya, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Thailand, Türkiye, United Arab Emirates, Uruguay, Venezuela, and Vietnam.
Product Coverage
These additional tariffs will be imposed on all products except a wide range of goods listed in annexes I and II to this notice, which include the following.
- all articles and parts subject to section 232 tariffs
- products of Canada or Mexico that qualify for duty-free entry under the USMCA
- textile and apparel articles from CAFTA-DR countries that qualify for duty-free entry under that agreement
- listed products of Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the EU, Guatemala, Indonesia, Jordan, Malaysia, Switzerland, Taiwan, or the U.K. that USTR deems “would encourage these economies to fulfill commitments regarding forced labor import prohibitions or to encourage these economies to enact and effectively enforce a forced labor import prohibition”
- informational materials, donations, and accompanied baggage
- raw materials that, if subject to the tariffs, could lead to the unavailability of domestic supply
- products that could cause economy-wide disruptions if subject to the tariffs
- certain products that cannot be grown or produced in sufficient quantities in the U.S. or obtained from other sources
- products that, if exempted, would encourage countries to enact and effectively enforce a forced labor import prohibition
- articles for which additional tariffs may not contribute substantially to the elimination of the investigated acts, policies, and practices
Effective Date
The new Section 301 tariffs are applicable with respect to covered goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on July 24.
However, covered goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before that time and entered or withdrawn from warehouse for consumption before 12:01 a.m. EDT on July 28 will not be subject to these tariffs.
Textiles and Apparel
When USTR determines that it is feasible, the agency will establish tariff-rate quotas that, for an initial duration of three years, will allow a certain volume of specific textiles and apparel (based on their imports of U.S. inputs) to be imported from Bangladesh, Cambodia, Indonesia, and Malaysia exempt from the 10 percent Section 301 forced labor tariff. That tariff will be imposed until those TRQs are established.
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