Source: Global Trade Alert
Date: 24th July 2026 

New tariff framework introduces additional duties of up to 12.5%, creating new compliance requirements and cost considerations for global supply chains.

The United States has officially implemented a new Section 301 tariff framework targeting imports from 60 economies, adding another layer of complexity to international trade and customs compliance.

Effective 24 July 2026, additional duties of 10% or 12.5% now apply to products originating from the affected economies. While thousands of products remain eligible for exemptions, the new measures require businesses to carefully review product classifications, country of origin and applicable tariff treatments before exporting to the U.S.

Unlike traditional across-the-board tariffs, the new framework applies different duty rates depending on each economy’s forced-labour import regime, resulting in four distinct tariff treatments.

The largest group consists of 38 economies, including China, Brazil, Vietnam and Russia, which are subject to a flat 12.5% additional tariff.

Another 17 economies, including India, Mexico, Canada and the United Kingdom, face a flat 10% additional tariff.

Only five economies benefit from the more favourable “net-of-most-favoured-nation (MFN)” treatment, where the additional duty is calculated after deducting the existing MFN tariff rate:

• European Union and Taiwan – 10% net of MFN
• Japan, South Korea and Switzerland – 12.5% net of MFN

This means the vast majority of the affected economies, 38 out of 60, will pay the full 12.5% tariff, while only a small number receive preferential tariff treatment.

Alongside the tariff measures, the U.S. has also introduced an extensive exemption framework covering more than 2,100 tariff codes applicable across all affected economies. Additional country-specific exemption lists cover selected economies, allowing certain products to remain exempt where specified.

The exemptions include products for civil aviation, pharmaceutical applications, selected industrial goods, humanitarian shipments and several preferential trade programmes. However, businesses must ensure their products meet the relevant exemption criteria before claiming relief.

The new tariff regime highlights the growing role of labour standards within international trade policy. Beyond tariffs alone, companies exporting to the U.S. will increasingly need to demonstrate robust supply chain due diligence, origin verification and compliance with evolving regulatory requirements.

The new Section 301 measures add another layer of complexity to global sourcing decisions.

Manufacturers supplying the U.S. market may reassess production locations and supplier networks as differing tariff treatments create varying cost structures across countries. Importers will also need to review landed costs, customs classifications and available exemptions to minimise unnecessary duty exposure.

The framework further reinforces the growing importance of supply chain transparency and responsible sourcing as governments increasingly link trade policy with labour and sustainability objectives.

The latest Section 301 action reflects a broader shift towards trade policies that extend beyond traditional market access and increasingly focus on labour standards, supply chain governance and regulatory compliance.

As governments continue to strengthen trade enforcement measures, businesses with diversified sourcing strategies, strong customs expertise and comprehensive supply chain visibility will be better positioned to adapt to future policy changes.

Companies should also expect further reviews and refinements to tariff programmes as trade policies continue to evolve in response to changing geopolitical and economic priorities.

What This Means

• Review country-of-origin declarations for all U.S.-bound shipments.
• Verify whether products qualify under the available exemption lists.
• Recalculate landed costs to reflect the new tariff treatment.
• Assess sourcing strategies where additional duties may affect competitiveness.
• Strengthen documentation and customs compliance processes to minimise clearance risks.
• Work closely with freight forwarders and customs brokers to ensure accurate tariff classification and origin reporting.

The implementation of the new Section 301 forced-labour tariff framework demonstrates that trade compliance has become a strategic supply chain priority rather than simply a customs function.

For companies trading with the United States, tariff management now extends beyond duty rates to include sourcing decisions, supplier transparency, product classification and regulatory compliance. Businesses that proactively strengthen supply chain visibility and diversify sourcing options will be better equipped to manage evolving trade policies while maintaining operational resilience in an increasingly complex global trading environment.