Unsurprisingly, given the tariff policy pursued by the Trump II administration since 2 April 2025, on 23 July 2026 the US Trade Representative (USTR) adopted the definitive measures taken under Section 301 on the instructions of President[1] . These measures follow 60 investigations launched on 12 March 2026 concerning the absence or inadequacy of an effective ban on the import of goods produced, in whole or in part, through forced labour. According to its notice, the USTR considers that the practices of the economies concerned are ‘unreasonable’ and that they adversely affect US trade, in particular by exposing US producers to competition that benefits from artificially reduced costs[2] .
The measure therefore does not target only goods that have been established as having been manufactured using forced labour. It takes the form of a trade remedy applicable, in principle, to all goods originating in the economies concerned, thereby justifying the use of Section 301[3] amongst the tariff policy tools available to the Trump administration.
The rates applied depend on the level of commitment shown by each trading partner. In this regard, a 10 per cent rate is applied to economies (including the European Union, Taiwan, the United Kingdom, Canada, India, Indonesia, etc.) which:
- already have an import ban in place, deemed to be inadequately enforced,
- have adopted only a ‘partial’ regime that is insufficient to prevent the import of certain goods produced by forced labour; or
- have committed to introducing such a ban as part of a trade agreement with the United States.
Other economies (including Australia, China, Hong Kong, Morocco, South Korea, Vietnam and Türkiye) are subject to an additional duty of 12.5 per cent.
With regard to the European Union, the USTR specifically criticises it for failing to ensure the effective implementation of the ban on the import of goods produced by forced labour, a prohibition that is nevertheless clearly provided for in European Regulation (EU) 2024/3015[4] , the main provisions of which will not apply until 14 December 2027.⁴
For goods originating in the EU, the 10 per cent Section 301 duties are not applied uniformly but are calculated on the basis of the applicable most-favoured-nation (‘MFN’) duty, as follows. For a given product, where the MFN duty is:
- less than 10 per cent, an additional Section 301 duty is levied equal to the difference, bringing the total rate to 10 per cent. In this case, importers must enter code 9903.05.39 on their import declaration;
- equal to or greater than 10 per cent, no additional Section 301 duty is payable – the Chapter 99 code to be entered on the import declaration is 9903.05.38.
As regards exemptions, there are two types:
- general exemptions (Annex 1), applicable to all 60 countries and covering, in particular, products subject to Section 232 of the Trade Expansion Act of 1962, preferential schemes (USMCA, CAFTA-DR), civil aircraft and their components, and other sector-specific products (pharmaceuticals, semiconductors, timber, etc.);
- specific exemptions, which are specific to each economy as set out in Annex 2. With regard to European products, the annex covers 43 tariff headings, including, in particular, natural cork products, cast iron, iron or steel shot, certain natural pearls and diamonds – these exemptions must be declared under code 9903.05.97 upon importation.
In light of the Turnberry Agreement concluded between the EU and the United States[5] and recently implemented by the European Union[6] , the entry into force of the Section 301 duties has been regarded – at least by the Commission – as compatible with the tariff commitments under the agreement, although the precise interactions between the two regimes have not been formally clarified. The new duties are presented as not cumulative with existing duties, which rules out the risk of a 25 per cent tariff rate, suggests that the new tariff reference rate applicable to European imports is 10 per cent, and contributes to the overall compatibility of the two schemes. However, whilst this clarification is welcome, it does not appear to fully exempt operators from carrying out a case-by-case analysis to verify the applicable new tariff regime and eligibility for any exemptions.
[1] Presidential Memoranda of 23 July 2026, Actions by the United States in the Investigations under Section 301 of the Trade Act of 1974 into the Acts, Policies, and Practices of 60 Economies Related to the Failure of Each Economy to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labour
[2] USTR, Notice of Actions in Section 301 Investigations into the Acts, Policies and Practices of Various Economies Relating to the Failure of Each Economy to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labour, 23 July 2026, pp. 1–3; USTR, press release of 23 July 2026.
[3] Section 301(c) authorises the USTR, amongst other things, to impose duties on goods regardless of their direct involvement in the practice under investigation. USTR, Notice of Actions, cited above, pp. 6 and 7.
[4] Regulation (EU) 2024/3015 of the European Parliament and of the Council of 27 November 2024 on the prohibition of products made with forced labour on the Union market, Article 39.
[5] Joint Statement by the United States and the European Union on a framework for a reciprocal, fair and balanced trade agreement, 21 August 2025, points 2 and 3.
[6] Regulation (EU) 2026/1455 of the European Parliament and of the Council of 25 June 2026 on the adjustment of customs duties on imports of certain goods originating in the United States of America and on the opening of tariff quotas for imports of certain goods originating in the United States of America