US replaces the 10% global surcharge with Section 301 forced-labor duties

When the Section 122 surcharge expired on 24 July 2026, new Section 301 duties of 10% or 12.5% took effect on goods from 60 economies, including China, Vietnam, India, Türkiye, the UK and the EU.

Section 122 surcharges are limited to 150 days and Congress did not extend the one imposed in February, so it lapsed on 24 July 2026. The US Trade Representative replaced it the same minute with duties under Section 301, based on a finding that 60 economies do not effectively ban imports made with forced labor.

Rates by origin

• 10% on top of the normal rate: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, United Kingdom.
• 12.5% on top of the normal rate: 38 economies including China, Vietnam, Thailand, Türkiye, Brazil, Australia, Saudi Arabia, the UAE, Singapore and South Africa.
• Combined cap of 10%: EU member states and Taiwan. The duty only tops the normal (MFN) rate up to 10%, so a product with a 12% MFN rate pays nothing extra.
• Combined cap of 12.5%: Japan, South Korea and Switzerland.

Exemptions and stacking

USMCA-qualifying goods from Canada and Mexico are exempt. Some raw materials, certain pharmaceuticals and civil aircraft parts are excluded. For China, the new duty is added on top of the existing Section 301 lists (25% or 7.5%). Brazil also pays a separate 25% Section 301 duty from 22 July.

Unlike Section 122, Section 301 duties have no built-in end date.

Example: cotton T-shirts from Türkiye with a 16.5% MFN rate now pay 16.5% + 12.5% = 29% plus fees. The same goods from Italy pay 16.5% only, because the EU cap is already exceeded.