Trump Imposes Sweeping Tariffs Under Section 301
As the 10% Section 122 tariffs expired at midnight on July 24, the U.S. Trade Representative on Thursday prepublished a Federal Register Notice finalizing tariffs of 10-12.5% in each of the 60 investigations into countries’ failures to eliminate forced labor from their supply chains.
- The tariffs went into effect at 12:01 a.m. EDT today.
The details: With exceptions, tariffs will be imposed on all products of the investigated economies.
- Seventeen economies face a 10% tariff rate—these economies impose or committed to impose and enforce a forced labor prohibition through an Agreement on Reciprocal Trade (ART) deal, or impose a partial regime. This rate is inclusive of most-favored-nation (MFN) rates for the European Union and Taiwan. For the additional 15 countries, the 10% rate stacks on top of MFN.
- For the additional 43 economies investigated, the rate is 12.5%. This rate is inclusive of MFN for Japan, South Korea and Switzerland, but for others, the 12.5% rate is applied on top of MFN.
- However, any country not included in this Section 301 investigation will not have this additional Section 301 tariff applied and will not have a 10% Section 122 tariff once they expire on July 24.
| 10% Tariff Inclusive of MFN | 12.5% Tariff Inclusive of MFN |
|---|---|
| European Union; Taiwan | Japan; South Korea; Switzerland |
| Additional 10% Tariff | Additional 12.5% Tariff |
|---|---|
| Argentina; Bangladesh; Cambodia; Canada; Ecuador; El Salvador; Guatemala; Honduras; India; Indonesia; Jordan; Malaysia; Mexico; Pakistan; Sri Lanka; Trinidad and Tobago; United Kingdom | Algeria; Angola; Australia; the Bahamas; Bahrain; Brazil; Chile; China; Colombia; Costa Rica; Dominican Republic; Egypt; Guyana; Hong Kong, China; Iraq; Israel; Kazakhstan; Kuwait; Libya; Morocco; New Zealand; Nicaragua; Nigeria; Norway; Oman; Peru; the Philippines; Qatar; Russia; Saudi Arabia; Singapore; South Africa; Thailand; Türkiye; United Arab Emirates; Uruguay; Venezuela; Vietnam |
Check the annexes: The proclamation includes exemptions for some products, including certain pharmaceuticals, vaccines, minerals, auto parts, civil aircraft products, fertilizer products, semiconductor equipment, battery waste and scrap and wood products, as well as other materials like aluminum hydroxide. It also includes country-specific exemptions based on individual ART deals negotiated before this action was finalized.
- Annex I (pp. 73-136) provides implementation guidance and translates exemptions into the Harmonized Tariff Schedule system. However, members should rely primarily on the guidance issued by Customs and Border Protection.
- Annex II (pp. 137-431) contains several parts. Part A lists goods exempted from any investigated economy. Parts B through O list goods exempted for specific countries on the basis of individual ART deals.
- USTR also plans to establish tariff-rate quotas for certain textiles and apparel from Bangladesh, Cambodia, Indonesia and Malaysia. Until the TRQ is established, the tariff rate for such products remains 10%.
- The Section 301 tariffs will not apply to products currently subject to Section 232 action; products claimed under Chapter 98; and USMCA-qualifying goods.
