U.S. tariffs on 60 economies take effect over forced-labor findings

New U.S. tariffs on imports from 60 economies are now in effect after the White House directed the United States Trade Representative to respond to what the administration says are failures to ban or effectively enforce bans on goods made with forced labor.

The additional Section 301 duties generally took effect at 12:01 a.m. Eastern time on July 24, 2026. The action matters to importers first, but its effects could reach manufacturers, retailers, workers and consumers through sourcing decisions, customs costs and supply chains.

What changed

The White House memorandum was issued July 23 after USTR opened the investigations on March 12 and issued its determinations on June 2. USTR said the investigations covered 60 economies and included public comments, hearings and consultations with trading partners.

The administration’s findings are agency and White House determinations under Section 301. The tariffs do not themselves create a new ban on forced-labor goods. Instead, they add duties to imports from economies that USTR found had not adopted or effectively enforced the required import prohibitions.

Rates depend on the country and product

Seventeen named economies, including Canada, Mexico, India, Bangladesh, Indonesia and the United Kingdom, face a general additional duty of 10 percent. Most of the other investigated economies face a 12.5 percent additional duty.

Those are general additional rates, not a guarantee that every product from every covered economy receives the same increase. For qualifying goods from the European Union and Taiwan, the Section 301 duty is structured so the combined existing Most-Favored-Nation tariff and new duty generally reaches 10 percent when the MFN rate is below that level. For Japan, South Korea and Switzerland, the combined rate generally reaches 12.5 percent when the MFN rate is lower than that amount.

The memorandum also exempts categories such as certain raw materials, products with limited U.S. supply alternatives and goods that could cause broader economic disruption. The detailed treatment depends on customs classification and the exemptions listed in the implementation documents.

What happened to goods already on the way

The final USTR notice included a limited in-transit exception. Goods loaded before the July 24 effective time and already in transit on their final mode of transportation could avoid the additional duty if they were entered for consumption before 12:01 a.m. Eastern time on July 28. That cutoff has now passed.

Textiles may change later

USTR was directed to establish three-year tariff-rate quotas for certain textile and apparel imports from Bangladesh, Cambodia, Indonesia and Malaysia when feasible. Those quotas are not yet operating. Until USTR establishes them, covered textile and apparel imports from those four economies remain subject to the applicable 10 percent Section 301 duty, subject to listed exemptions.

The White House memorandum says USTR expects the textile quota mechanism to become feasible by September 1, 2026. USTR must also publish a Federal Register notice describing the quotas and their effective date.

How Americans may feel the effect

U.S. importers are responsible for paying customs duties. Companies may absorb some of the cost, negotiate with suppliers, change sourcing plans or pass part of the expense through to retailers and consumers. The Associated Press reported that the covered economies account for about 99 percent of U.S. imports, but the actual effect on any product will depend on its origin, classification, existing tariff rate and eligibility for an exemption.

Consumers should not assume an immediate across-the-board price increase. The clearer signals will come from importer filings, retailer pricing, product substitutions, supply-chain changes and any response from the affected trading partners.

Sources

• White House presidential memorandum
• USTR final Section 301 action notice
• Associated Press tariff report