Urgent Trade Update: New Section 301 Tariffs Take Effect July 24
The Office of the U.S. Trade Representative (USTR) has officially finalized Section 301 tariffs on goods from 60 targeted economies, effective 12:01 a.m. ET on Friday, July 24, 2026.
Important Policy Transition: Section 122 Replaced by Section 301
A critical detail for importers: these new Section 301 tariffs replace previous temporary Section 122 emergency duties. The Section 122 rates are officially standing down as this permanent, investigation-backed Section 301 duty framework takes full effect.
Key Breakdown of the New Tariff Structure
The new framework establishes two main tariff tiers based on each country’s compliance with forced labor import prohibitions:
10% Tariff Rate: Applies to trading partners that have enacted, committed to, or partially implemented forced labor prohibitions (e.g., Canada, Mexico, Argentina, India, Indonesia, UK, Malaysia, Taiwan, and several others).
12.5% Tariff Rate: Applies to all remaining targeted economies that currently lack enforced forced labor prohibitions.
Special Net-MFN Rules: For imports from the EU, Japan, South Korea, Switzerland, and Taiwan, the Section 301 duty is calculated net of existing Most-Favored-Nation (MFN) rates so the combined total cap equals 10% or 12.5%.
Critical In-Transit Exemption Rules
Additional duties will not apply if your pending cargo meets both of the following conditions:
Loaded & En Route: The goods were loaded onto a vessel at the port of loading and in transit on their final mode of transport before 12:01 a.m. ET on July 24.
Entered On Time: The goods are formally entered for consumption or withdrawn from warehouse before 12:01 a.m. ET on Tuesday, July 28.
Immediate Action Steps for Importers
Audit Cargo on the Water: Check departure timestamps immediately to ensure eligible shipments enter before the July 28 cut-off.
Review Specific HTS Exemptions: USTR has carved out exemptions for specific raw materials, non-domestic goods, and items subject to upcoming Tariff-Rate Quotas (TRQs) starting September 1.
Adjust Duty Estimates: Update entry filings to reflect the sunset of Section 122 duties and the application of Section 301 rates (including Net-MFN calculations where applicable).
Need Support Navigating These Changes?
Transitioning from Section 122 to Section 301 requires swift adjustments to avoid customs delays, incorrect duty payments, or missed in-transit claims. Our trade compliance specialists can audit your supply chain and verify your entry lines today.
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