Dear client,

 The United States has imposed new Section 301 tariffs of 10% or 12.5% on most imports from 60 economies. The measure responds to the U.S. Trade Representative’s findings concerning the failure of these economies to impose and effectively enforce prohibitions on the importation of goods produced with forced labour.

The tariffs apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on July 24, 2026.

CUSMA/USMCA exemption for Canadian and Mexican

Importantly, products of Canada or Mexico that are entered duty-free under the Canada–United States–Mexico Agreement (CUSMA/USMCA) are exempt from this new Section 301 tariff.The U.S. tariff provisions implementing the exemption are:

• 9903.05.93 for qualifying products of Canada; and
• 9903.05.94 for qualifying products of Mexico.

The exemption is not based solely on the country from which the goods are shipped. Goods must qualify as originating under the CUSMA/USMCA rules of origin and be eligible for duty-free treatment under the agreement.

For example, goods of Chinese origin imported into Canada and subsequently re-exported to the United States generally would not qualify merely because they were shipped from Canada.

Importers should ensure that valid CUSMA/USMCA origin support is available and that the appropriate preferential treatment and Chapter 99 exemption are claimed at the time of entry.

Countries and rates

10% additional tariff:

Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.

For Canada and Mexico, the 10% tariff applies only where the goods do not qualify for the CUSMA/USMCA exemption or another applicable exclusion. Rate calculated net of the normal Most-Favoured-Nation duty:

• European Union and Taiwan: the combined normal duty and new Section 301 tariff is generally capped at 10%.
• Japan, South Korea and Switzerland: the combined normal duty and new Section 301 tariff is generally capped at 12.5%.

12.5% additional tariff:

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, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Thailand, Türkiye, United Arab Emirates, Uruguay, Venezuela, and Vietnam.

Other exemptions and considerations 

The new Section 301 tariff is subject to additional exemptions, including:

• Goods already subject to specified Section 232 tariffs, including covered steel, aluminum, copper, automotive, wood-product and semiconductor articles;
• Certain specifically identified products and raw materials.
• Most goods properly entered under Chapter 98.
• Informational materials, qualifying donations and accompanied baggage; and
• Goods meeting the limited in-transit exception.

The tariffs generally stack with other applicable duties and trade remedies unless a specific exemption applies. The CUSMA/USMCA exemption discussed above relates only to this new Section 301 forced-labour tariff. It should not be assumed to exempt goods from other U.S. tariffs, antidumping or countervailing duties, or forced-labour admissibility requirements.