US import duty · Section 301
The Section 301 forced-labor tariff: 12.5% on goods from China
Since July 24, 2026, most goods from China pay an extra 12.5% under a new Section 301 action. It is aimed at countries that do not ban imports made with forced labor, it covers 60 trading partners, and it has no exclusion process. It adds to the Section 301 duties China already paid. This page explains who pays what, what is exempt, and how it differs from the forced-labor import ban.
What the action is
USTR investigated whether US trading partners impose and enforce a ban on imports made with forced labor. On June 2, 2026 it found that 60 of them did not, and on July 23, 2026 it announced tariffs (USTR press release; notice of action published at 91 FR 47318 on July 28, 2026). USTR's fact sheet says the action covers "the top 60 U.S. trade partners covering 99.4% of U.S. imports".
The notice divides them in two: 54 economies that have no such ban, including China and Hong Kong, and six that have one but do not enforce it effectively: Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan.
Who pays what
| Group | Additional duty |
|---|---|
| China (heading 9903.05.31) and Hong Kong (9903.05.43) | +12.5% |
| Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, United Kingdom | +10% |
| European Union and Taiwan | A combined rate of at least 10%, including the normal duty |
| Japan, South Korea and Switzerland | A combined rate of at least 12.5%, including the normal duty |
| All other listed economies | +12.5% |
The lower 10% applies, in the notice's words, to an economy that "imposes a forced labor import prohibition, has committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade (ART), or has imposed a partial regime". The groupings above are read from the headings in the current tariff schedule (USITC HTS 2026 Revision 21, U.S. note 52 to chapter 99).
This matters for buyers moving production out of China: shifting an order to another Asian supplier country does not necessarily avoid the forced-labor duty, because it covers 60 economies and most of them pay the same 12.5%; check the new country's own heading in note 52 before assuming a saving. What moving does avoid is the China-only Section 301 duties of 7.5% to 100%, which is where the larger difference lies. More on this in moving production out of China.
When it started, and goods already shipped
The duty applies to goods entered on or after 12:01 a.m. eastern time on July 24, 2026. Goods loaded onto a vessel before then, and entered before 12:01 a.m. on July 28, 2026, were exempt (heading 9903.05.85). It replaced the temporary 10% Section 122 surcharge, which applied to all countries from February 24, 2026 and expired at the close of July 23, 2026.
How it stacks with other duties
- On top of the China Section 301 duties. Note 52(a) says goods subject to these headings "shall also be subject to any additional duty provided for in this subchapter", which includes the existing China headings (9903.88 and 9903.91). A lithium-ion battery from China, for example, pays 3.4% + 25% + 12.5%: see tariffs on lithium-ion batteries from China.
- Not on Section 232 goods. Note 52(f) leaves out articles of steel, aluminum and copper subject to Section 232, passenger-vehicle and truck parts, Section 232 semiconductor articles and patented pharmaceuticals. A good that pays a Section 232 duty does not also pay this one.
- Antidumping and countervailing duties still apply as well.
What is exempt
USTR's fact sheet lists "Informational materials, donations, and accompanied baggage; All articles and parts of articles subject to section 232 tariffs; and Certain products which include (i) raw materials" and other listed goods. The exempt subheadings are in U.S. note 52(b) and (c). Among those relevant to battery supply chains:
- natural graphite (2504.10.10, 2504.10.50, 2504.90.00);
- lithium hydroxide (2825.20.00) and lithium carbonate (2836.91.00);
- one permanent-magnet statistical line (8505.11.0070);
- semiconductor subheadings in 8541 and 8542.
Finished lithium-ion batteries (8507.60) and battery parts (8507.90) are not on the exempt list. Check your own ten-digit line against note 52 in the current schedule; the exemption list is long and is set by subheading.
No exclusions, and how it can change
USTR declined to create an exclusion process: the notice says one "would be inconsistent with the President's direction". It points to Section 307 of the Trade Act (19 U.S.C. 2417) for modifying the action later, for example if a country adopts and enforces a ban. As of October 14, 2026 we found no notice opening such a review. The rate for a given country can therefore change when that country changes its own law, which is worth watching for any alternative supplier country.
Not the same as the forced-labor import ban
This tariff is charged because of what the exporting country's government has not done. It applies to goods regardless of how they were made. The Uyghur Forced Labor Prevention Act works the other way: it decides whether specific goods may enter at all, based on where and by whom they were made. A shipment can pay the 12.5% and still be detained under the UFLPA. See the UFLPA for battery and mineral importers.
Sources: USTR notice of action (pre-publication copy dated July 23, 2026), press release and fact sheet; 91 FR 47318 (Federal Register document 2026-15181); USITC HTS 2026 Revision 21, chapter 99 U.S. note 52 and headings 9903.05.20–9903.06.21. Last checked October 14, 2026. General information, not customs advice.
Last checked 2026-10-14