USTR Proposes New Section 301 Tariffs on Imports from China, Vietnam, South Korea, Indonesia, and 56 Other Countries
The Office of the United States Trade Representative (USTR) has proposed a new Section 301 tariff action that could impose additional import duties of 10% to 12.5% on products from 60 countries and trading partners.
If implemented, the proposal would significantly expand U.S. tariff exposure across major sourcing markets including China, Vietnam, South Korea, Indonesia, India, Taiwan, Malaysia, Japan, Mexico, Canada, the European Union, and many others.
The proposed tariffs are tied to USTR's investigation into whether trading partners have implemented and effectively enforced prohibitions on imports produced with forced labor.
Important: These tariffs are currently proposed and are not yet in effect. USTR is accepting public comments through July 6, 2026, before making a final determination.
What Are the Proposed Section 301 Tariffs?
Under the proposal, USTR would impose additional Section 301 duties on imports from 60 countries.
The proposed tariff rates are:
• 10% additional duty for countries that have implemented a forced labor import prohibition, committed to implementing one, or maintain a partial enforcement regime
• 12.5% additional duty for all other countries covered by the investigation
For importers already paying Section 301 tariffs, Section 232 duties, IEEPA tariffs, or AD/CVD duties, these proposed tariffs could potentially be additive, although USTR has not yet released final implementation guidance.
Countries Subject to the Proposed 10% Tariff
The following countries and trading partners would be subject to a proposed 10% additional tariff:
• Argentina
• Bangladesh
• Cambodia
• Canada
• Ecuador
• El Salvador
• European Union
• Guatemala
• Indonesia
• Malaysia
• Mexico
• Pakistan
• Taiwan
• United Kingdom
Countries Subject to the Proposed 12.5% Tariff
The following countries would be subject to a proposed 12.5% additional tariff:
• Algeria
• Angola
• Australia
• Bahamas
• Bahrain
• Brazil
• Chile
• China
• Colombia
• Costa Rica
• Dominican Republic
• Egypt
• Guyana
• Honduras
• Hong Kong
• India
• Iraq
• Israel
• Japan
• Jordan
• Kazakhstan
• Kuwait
• Libya
• Morocco
• New Zealand
• Nicaragua
• Nigeria
• Norway
• Oman
• Peru
• Philippines
• Qatar
• Russia
• Saudi Arabia
• Singapore
• South Africa
• South Korea
• Sri Lanka
• Switzerland
• Thailand
• Trinidad and Tobago
• Türkiye
• United Arab Emirates
• Uruguay
• Venezuela
• Vietnam
How Will the Proposed Tariffs Impact Importers?
For many companies, these countries represent the majority of their sourcing footprint.
Importers should begin evaluating:
• Additional landed cost exposure
• Country of origin concentration risk
• Existing Section 301 tariff exposure
• Product classification impacts
• Alternative sourcing opportunities
• Potential exclusion opportunities
Companies sourcing from China, Vietnam, South Korea, Indonesia, and other affected countries should closely monitor developments as the proposal advances.
Proposed Tariff Exclusions
USTR's proposal includes a significant list of exclusions under Annex A.
Potentially excluded products include:
• Certain raw materials
• Critical minerals
• Energy products
• Products already subject to Section 232 tariffs
• Goods where additional tariffs could create supply chain disruptions or domestic shortages
Because exclusions are product specific, importers should review classifications carefully before estimating total tariff exposure.
Can Companies Submit Comments to USTR?
Yes.
Importers, manufacturers, retailers, trade associations, and other stakeholders may submit comments during the public comment period.
Historically, public comments have influenced Section 301 actions, product exclusions, and implementation details. Companies that expect significant impacts should consider participating in the process either directly or through industry groups.
Companies seeking product specific exclusions or tariff relief should strongly consider submitting comments. Importal can assist businesses in evaluating their exposure and preparing submissions during the comment period.
Section 301 Tariff Timeline
June 22, 2026 - Requests to testify due
July 6, 2026 - Public comments due
July 7, 2026 - Public hearings begin
What Importers Should Do Next
Although the proposal is not final, companies should begin assessing potential exposure now.
Key areas to review include:
• Sourcing countries
• Product classifications
• Existing tariff exposure
• Potential exclusion opportunities
• Supply chain diversification strategies
While the proposal remains subject to public comment and revision, importers should prepare for the possibility that some version of these tariffs ultimately moves forward.
Importal will continue monitoring the proposed Section 301 tariffs and provide updates as additional guidance becomes available.
How Importal Solves This
Importal is the first AI powered licensed US customs brokerage. Our platform tracks every regulatory change in real time. When tariffs change, we catch them and apply updates to entries automatically.
The difference is that our licensed brokers have the right compliance data at their fingertips when they file your entries. When Section 232 rates change, when Chapter 99 codes shift, when new exclusions take effect, our system flags it before the entry gets filed. Not after CBP liquidates it wrong.
Traditional brokers are manually tracking CSMS messages, Federal Register notices, and executive orders. They are updating spreadsheets and hoping they caught everything. Our platform does that work in real time and surfaces it directly to our licensed brokers during entry filing.
