New U.S. Tariffs Cover 99% of Imported Goods – Here's What You Need to Know

New U.S. Tariffs Cover 99% of Imported Goods – Here's What You Need to Know

The U.S. Trade Representative (USTR) has officially announced new Section 301 tariffs targeting 60 countries and regions, replacing the 10% Section 122 tariff that expired on July 24. Citing "forced labor" concerns, the new tariffs follow directives from President Trump under Section 301 of the Trade Act of 1974.

Effective date:12:01 AM ET on July 24, 2026 (12:01 PM Beijing Time, July 24).

In-transit goods exception:Goods already loaded on vessels and in transit before 12:01 AM ET on July 24, 2026, and cleared for import before 12:01 AM ET on July 28, 2026, are exempt from the new Section 301 tariffs.

Four Tariff Tiers Explained

Tier 1: 10% Additional Tariff

Applies to economies that have established forced labor import bans, made commitments through "Reciprocal Trade Agreements (ART)," or implemented partial restrictive measures.

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

Tier 2: Section 301 + MFN = 10% Total

When the Most-Favored-Nation (MFN) rate is below 10%, additional Section 301 tariffs will bring the total to 10%. If the MFN rate is already 10% or higher, no additional Section 301 tariff applies.

Economies included:European Union, Taiwan, China.

Tier 3: Section 301 + MFN = 12.5% Total

When the MFN rate is below 12.5%, additional Section 301 tariffs will bring the total to 12.5%. If the MFN rate is already 12.5% or higher, no additional Section 301 tariff applies.

Countries included:Japan, South Korea, Switzerland.

Tier 4: 12.5% Additional Tariff

A flat 12.5% additional tariff on top of existing rates.

Countries included: Mainland China, Hong Kong China, Vietnam, Algeria, Angola, Australia, Bahamas, Bahrain, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Egypt, Guyana, Iraq, Israel, Kazakhstan, Kuwait, Libya, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Thailand, Turkey, United Arab Emirates, Uruguay, Venezuela.

Important Notes

Stacking rule:The new Section 301 tariffs are added on top of previous Section 301 tariffs. However, they do not stack with Section 232 tariffs.

Product Exemptions

Many product categories are exempt from these tariffs:

Information materials, donated goods, and accompanied baggage

All products subject to Section 232 tariffs, including steel, aluminum, copper, automobiles and auto parts, wood, semiconductors, and more. Patent medicines will be added to this list later.

Five categories of products exempted by President Trump:

1. Raw materials where tariffs could cause domestic supply shortages

2. Products that could cause overall economic disruption

3. Products that the U.S. cannot produce in sufficient quantities at reasonable prices, or obtain from other sources

4. Products where tariffs would not materially contribute to eliminating the practices under investigation

5. Specific products from certain economies (Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, EU, Guatemala, Indonesia, Jordan, Malaysia, Switzerland, Taiwan China, UK) to encourage them to enforce or implement forced labor import bans

Textile Tariff Rate Quota (TRQ) mechanism:A 3-year tariff quota will be established for four countries — Bangladesh, Cambodia, Indonesia, and Malaysia. Based on the volume of U.S. cotton and textile raw materials imported by these economies, a certain quota of textile and apparel exports to the U.S. will be exempt from the additional 301 tariff. Until the TRQ is formally established, related textiles will be taxed at 10%.