Signal New Section 301 tariffs on forced-labor goods take effect; Section 122 global tariff lapses

Summary

The USTR's Section 301 forced-labor tariffs took effect at 12:01 a.m. ET on 24 July 2026, imposing a 10% rate on 17 countries including Canada, Mexico, India, Bangladesh and Cambodia, and a 12.5% rate on 43 countries including China, Brazil, Vietnam and Thailand, with compound duty caps of 10-12.5% for the EU, Taiwan, Japan, South Korea and Switzerland. Goods loaded before 24 July and arriving before 28 July are exempt, and the new tariffs do not stack with Section 232 tariffs but do stack with existing Section 301 tariffs on China and Brazil. The 10% global tariff under Section 122 of the Trade Act expired the same day, 24 July 2026, having been upheld by a federal appeals court on 11 June 2026, and was effectively replaced by the new Section 301 forced-labor tariffs. A 25% Section 301 tariff on Brazilian goods took effect at 12:01 a.m. EST on 22 July 2026, exempting shipments loaded before that date and entered before 29 July. A 100% tariff on patented pharmaceuticals and active ingredients is scheduled to take effect on 31 July 2026 for large companies. The first joint review of the USMCA was conducted in July 2026, focusing on rules of origin, tariff and export-control alignment, agricultural market access, critical mineral production, and labor and environmental protections.