Section 301 Forced Labor Tariffs 2026: USTR Proposes 10 to 12.5 Percent on 60 Economies
On June 2 2026, USTR proposed Section 301 tariffs of 10 to 12.5 percent on imports from 60 economies as part of forced labor investigations. Here is the country tier list, the Annex A exemption categories, the hearing schedule, and how importers should plan.
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Open calculatorSection 301 Forced Labor Tariffs 2026: USTR Proposes 10 to 12.5 Percent on 60 Economies
On June 2 2026, the United States Trade Representative announced proposed Section 301 tariffs of 10 to 12.5 percent on imports from 60 economies as part of an investigation into failures to take action on trade in forced labor goods. The proposal is the largest single-event tariff expansion of the second Trump administration, broader in scope than the original Section 301 China lists and the Section 122 reciprocal program combined.
For mid-market and industrial importers, this proposal changes the planning math on every China, India, Vietnam, and ASEAN supply lane through the rest of 2026 and beyond. This guide walks through the country tier structure, the Annex A exemption categories, the public comment timeline, and the duty stack implications.
The two tariff tiers
USTR proposes two ad valorem rates, applied at the country level based on each economy's own forced labor import regime.
10 percent tier (14 unique trading entities): 13 individual countries plus the European Union (a single trading entity for tariff purposes despite 27 member states). These are economies that either operate a domestic forced labor import prohibition, have committed to one through a reciprocal trade agreement with the United States, or have implemented a partial regime with the effect of preventing the importation of certain forced labor goods.
12.5 percent tier (46 countries): All remaining target economies. This tier captures China, India, Vietnam, Indonesia, Bangladesh, Thailand, the Philippines, and most major manufacturing economies that have not committed to or implemented a comparable forced labor import regime.
The country tier assignment is published in the June 2 2026 Federal Register notice. Operators should confirm against the official USTR notice rather than rely on summary lists because tier assignment may shift between proposal and final action.
Annex A exemptions
The proposal exempts certain product categories regardless of origin tier:
- Agricultural products listed in Annex A (specific HS chapters and subheadings)
- Aviation parts and equipment
- Industrial inputs (specified by HS code)
- Minerals (specified by HS code)
- Pharmaceutical goods (specified by HS code)
- Goods already subject to Section 232 duties (steel, aluminum, copper, and their derivatives)
The Section 232 carve-out is operationally important. A steel article from China currently paying 50 percent Section 232 would NOT additionally pay the proposed forced labor 12.5 percent. Aluminum and copper get the same treatment.
Timeline
| Date | Event |
|---|---|
| June 2 2026 | USTR proposal published in Federal Register |
| June 22 2026 | Hearing appearance request deadline |
| July 6 2026 | Public comment period closes |
| July 7 2026 | USTR public hearing |
| August-September 2026 (estimated) | Final action and effective date |
Importers and supply chain operators should file written comments through the USTR docket by July 6 if the proposal touches their lanes. The hearing slot for live testimony is limited.
Worked example: China to USA mid-2026 stack on a 100k USD shipment
Assume a Chinese-origin consumer electronics shipment (HTSUS 8517.62, smart-home devices) on List 4A. Effective duty stack as of June 23 2026:
| Layer | Rate | Base | Amount (USD) |
|---|---|---|---|
| MFN | 0% | 100,000 | 0 |
| Section 301 List 4A | 7.5% | 100,000 | 7,500 |
| Section 122 reciprocal | 10% | 100,000 | 15,000 |
| MPF (capped) | 0.3464% | 100,000 | 346.40 |
| HMF (ocean) | 0.125% | 100,000 | 125 |
| Total | 22,971.40 |
If the proposed forced labor 12.5 percent goes effective in August 2026 (illustrative timing):
| Layer | Rate | Base | Amount (USD) |
|---|---|---|---|
| MFN | 0% | 100,000 | 0 |
| Section 301 List 4A | 7.5% | 100,000 | 7,500 |
| Section 122 reciprocal | 10% | 100,000 | 15,000 (expires 2026-07-24) |
| Section 301 forced labor | 12.5% | 100,000 | 12,500 (new layer) |
| MPF (capped) | 0.3464% | 100,000 | 346.40 |
| HMF (ocean) | 0.125% | 100,000 | 125 |
| Total before sunset | 35,471.40 | ||
| Total after Section 122 sunset | 20,471.40 |
For shipments that clear after Section 122 expires on July 24 but before the forced labor tariff takes effect, the duty cost actually drops. The window matters.
Worked example: India to USA in August 2026
100k USD shipment of industrial machinery (HTSUS 8479.89). India is in the 12.5 percent tier.
| Layer | Rate | Base | Amount (USD) |
|---|---|---|---|
| MFN | 0% | 100,000 | 0 |
| Section 301 forced labor | 12.5% | 100,000 | 12,500 |
| MPF (capped) | 0.3464% | 100,000 | 346.40 |
| HMF (ocean) | 0.125% | 100,000 | 125 |
| Total | 12,971.40 |
India does not currently face the original Section 301 China lists. After the Section 122 sunset on July 24 2026, India shipments will face only the new forced labor 12.5 percent plus MFN. For supply chains that already shifted from China to India during the Section 301 reshoring wave, the new forced labor proposal does claw back some of that arbitrage but the total stack still remains well below China-origin equivalents.
What importers should do now
Map your country exposure. For each supplier country in your lanes, identify the tier. The 12.5 percent tier captures most major manufacturing origins.
Identify Annex A coverage on your HS lines. If your product fits agricultural, aviation, industrial input, mineral, or pharmaceutical exemption categories, the proposal does not apply. Confirm against the Federal Register Annex A list by HS code.
Model the August or September 2026 stack. Build a duty estimate that assumes the forced labor tariff takes effect at proposed rates after the July 7 hearing. Compare to the Section 122 sunset effect on the same date.
File comments by July 6. If the proposal would meaningfully impact a sourced product or end customer, the USTR docket is the formal channel to influence final scope. Written comments carry weight even without a hearing appearance.
Watch the Federal Circuit Section 122 appeal. If the appeal upholds the CIT ruling that Section 122 exceeded presidential authority, importers paying Section 122 between February 24 and July 24 2026 may have refund standing. The forced labor proposal is on different statutory ground (Section 301) and is not affected by the Section 122 litigation.
Run the new stack in the calculator
The LandedFees calculator already supports the existing duty layers (MFN, Section 301 China lists, Section 232, Section 122, MPF, HMF). The new Section 301 forced labor layer will be wired in once the final action and effective date are published, expected late July or early August 2026.
Run a current 2026 landed-cost calculation
Citations
- USTR press release June 2 2026: https://ustr.gov/about/policy-offices/press-office/press-releases/2026/june/ustr-makes-findings-and-proposes-action-60-section-301-investigations-relating-failures-take-action
- USTR Section 301 report June 2 2026: https://ustr.gov/sites/default/files/files/Press/Releases/2026/USTR%20Report%20Sec%20301%20FL%20301%206-2-26%20FINAL%20for%20upload.pdf
- USTR Federal Register notice June 2 2026: https://ustr.gov/sites/default/files/files/Press/Releases/2026/FRN%20-%20Section%20301%20Forced%20Labor%20Import%20Ban%20Actionabilty%20and%20Proposed%20Action%206-2-26%20FINAL.pdf
- White & Case analysis: https://www.whitecase.com/insight-alert/ustr-proposes-10-125-tariffs-section-301-investigations-regulation-imports-produced
- Gibson Dunn analysis: https://www.gibsondunn.com/ustr-proposes-new-section-301-forced-labor-tariffs-covering-most-major-us-trading-partners/
- Troutman Pepper Locke analysis: https://www.troutman.com/insights/new-section-301-forced-labor-actions-ustr-proposes-duties-on-nearly-all-us-imports/
Frequently asked questions
Which countries face the 10 percent tier?
13 countries plus the European Union (14 unique trading entities). The 10 percent rate covers economies that already impose a forced labor import prohibition, have committed to impose one through a reciprocal trade agreement, or have implemented a partial regime preventing the importation of certain forced labor goods.
Which countries face the 12.5 percent tier?
46 countries that have neither imposed a forced labor import prohibition nor committed to one through a reciprocal trade agreement. This list includes China, India, Vietnam, and most major US trading partners across Asia, Africa, and Latin America.
When does this take effect?
Not yet effective as of June 23 2026. The proposal opened a public comment period through July 6 2026 with a USTR public hearing on July 7 2026. Earliest effective date is likely August or September 2026 if USTR proceeds with the proposed action after the hearing cycle.
What is exempt under Annex A?
Certain agricultural products, aviation parts and equipment, industrial inputs, minerals, pharmaceutical goods, and goods that are already subject to separate Section 232 duties (so steel, aluminum, copper, and their derivatives do not stack).
Does this stack on Section 122 or Section 301 China lists?
Yes, the proposed action would stack additively on the existing duty stack. A Chinese-origin good already paying List 1 Section 301 (25 percent), Section 122 (10 percent through July 24 2026), and now the new forced-labor 12.5 percent would face a combined 52.5 percent ad valorem before MFN and fees.
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