New Forced-Labor Tariffs Hit 60 Economies Starting July 24

FTZ News: New Section 301 duties targeting imports from 60 economies took effect at 12:01 a.m. Eastern Time on July 24, 2026, as part of a U.S. Trade Representative action aimed at forced labor in global supply chains.

The additional duties apply to goods entered for consumption or withdrawn from warehouse for consumption on or after that exact time. Rates are set at either 10 percent or 12.5 percent, depending on the country of origin and the applicable Chapter 99 HTSUS provision. Certain partners, including the European Union, Japan, South Korea, Switzerland, and Taiwan, face special combined duty rates rather than a pure additional ad valorem charge. The duties are administered through HTSUS headings 9903.05.20 through 9903.05.84 and apply on top of normal trade relations rates unless an exemption or exclusion is available.

General exemptions cover all listed economies and include certain in-transit goods loaded and exported before the effective date, products identified in U.S. Note 52, civil aircraft and related parts, pharmaceutical articles, specified aluminum, steel, copper and derivative metal products, passenger vehicles and parts, medium- and heavy-duty vehicles, wood products, semiconductor articles, humanitarian donations of food, clothing and medicine, and informational materials such as publications, films, software media and news feeds. Economy-specific exclusions are also available for qualifying goods from Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, EU member states, Guatemala, Indonesia, Jordan, Malaysia, Mexico, Switzerland, Taiwan, the United Kingdom and certain CAFTA-DR countries. Additional relief applies to qualifying USMCA and CAFTA-DR textiles and apparel entered duty-free under those agreements.

Chapter 98 provisions generally shield goods from the new duties, except for entries under subheadings 9802.00.40, 9802.00.50, 9802.00.60 and 9802.00.80, where the duties apply only to the value of foreign repairs, alterations, processing or foreign value added. Antidumping, countervailing duties and other existing charges remain in force.

For Foreign-Trade Zones, any product subject to these Section 301 duties that is admitted into a U.S. FTZ—unless eligible for Domestic Status under 19 C.F.R. §146.43—may only be admitted in Privileged Foreign Status under 19 C.F.R. §146.41 as of the duty’s effective date. Importers using FTZ programs must therefore review inventory and admission procedures for compliance.

Importers face a clear set of immediate steps: verify whether goods originate from one of the 60 covered economies, confirm the correct Chapter 99 classification and rate, check for general or country-specific exclusions, assess Chapter 98 eligibility, evaluate FTZ status requirements, and coordinate with customs brokers and suppliers before filing entries. Full technical details appear in CSMS #69326983 issued July 23, 2026.

The simultaneous rollout of precise duty rates, a fixed list of 60 economies, detailed Chapter 99 headings, and strict FTZ status rules creates an immediate compliance framework that importers must navigate product by product and entry by entry.