A new round of Section 301 tariffs took effect July 24, 2026, replacing the 10% global tariff that expired the same night. The new rates range from 10% to 12.5% depending on country and apply to roughly 99.4% of U.S. import volume.
The United States replaced its 10% global “Section 122” tariff with a new set of Section 301 tariffs at 12:01 a.m. ET on July 24, 2026. The new duties apply to 60 trading partner countries and cover an estimated 99.4% of total U.S. import value. Rates fall into two tiers: 12.5% for countries without forced labor laws on the books, and 10% for countries with laws in place but flagged for insufficient enforcement.
The shift caps months of legal and regulatory turnover. The Supreme Court struck down the prior administration tariff actions under the International Emergency Economic Powers Act in February 2026. Trump responded with a flat 10% global tariff under Section 122 of the Trade Act of 1974, a measure that carried a built-in 150-day expiration. That clock ran out on July 24, and the new Section 301 action is designed to be more durable.
What Changed: From Section 122 to Section 301
Section 122 tariffs are a stopgap tool. They allow a flat, temporary surcharge but expire automatically. Section 301 tariffs run on a different legal basis entirely: they follow a formal USTR investigation and finding, in this case centered on forced labor practices among trading partners. That process makes the new tariffs harder to challenge and gives the administration a standing mechanism it can adjust going forward without a new emergency declaration.
USTR launched the forced labor investigation on March 12, 2026, then spent the following weeks in consultations with 46 of the 60 governments under review. Findings landed on June 2, 2026, with a public comment period through July 6 and a hearing held July 7 through 9. USTR published its final action on July 23, 2026, and Customs and Border Protection confirmed implementation the same day, leaving importers a narrow window to adjust before the July 24 start date. Full country-by-country findings are available on the Office of the U.S. Trade Representative site.
A second, related case is still working through the pipeline. USTR opened a parallel Section 301 investigation the same month into excess industrial capacity across 16 economies, including China, Vietnam, Japan, South Korea, India, Mexico, and the European Union. That case has not been finalized. Brands sourcing from any of those 16 countries should treat the forced labor rate as a floor, not a ceiling, since a second tariff layer from the capacity case could still land on the same import lanes later this year.
New Tariff Rate Structure
| Tariff Category | Applies To | Rate |
|---|---|---|
| Forced labor laws in place, deemed insufficiently enforced | Roughly 17 countries, including the United Kingdom, Canada, and Mexico | 10% |
| No forced labor laws currently enacted | Most of the 60 countries, including China and Vietnam | 12.5% |
| Blended MFN and Section 301 rate | European Union, Japan, South Korea, Switzerland, Taiwan | Combined flat rate, varies by economy |
| Separate Section 301 action, outside the 60-country group | Brazil only | 25% |
| Section 232, product-based rather than country-based, does not stack with the new rates | Steel, aluminum, and copper imports from any country | 50% |
Brazil sits outside the 60-country forced labor action entirely. A separate 25% Section 301 tariff on most Brazilian goods took effect July 22, 2026, tied to a distinct trade case. The forced labor rates do not stack on top of existing Section 232 duties, so steel, aluminum, and copper importers stay at the current 50% rate rather than seeing it climb further. That non-stacking treatment is specific to Section 232. Goods from China remain subject to existing China-specific Section 301 tariffs and other applicable duties in addition to this new action, so brands with China-origin SKUs should add the new rate on top of what they already pay rather than assuming any offset.
Five economies, the European Union, Japan, South Korea, Switzerland, and Taiwan, do not receive a simple additive rate. Their goods instead face a blended flat rate that combines their existing Most-Favored-Nation duty with the Section 301 charge, calculated per the Federal Register notice rather than stacked as two separate line items. Brands sourcing beauty, supplements, or electronics components from any of those five markets should confirm the blended rate directly against their HTS classification rather than applying the standard 10% or 12.5% figure.
An in-transit exemption also applies. Goods already loaded onto a vessel before 12:01 a.m. ET on July 24, 2026 escape the new duty entirely, provided they are entered for consumption or withdrawn from a warehouse for consumption before July 28, 2026. Brands with shipments already at sea when the rule took effect should confirm entry dates with their customs broker immediately, since that four-day window is firm.
Most of the 60 countries land in the 12.5% tier, including China and Vietnam, the two largest sourcing markets for consumer electronics, hardware, and connected devices. A smaller group of roughly 17 countries qualifies for the 10% rate because they maintain some form of forced labor import prohibition, including the United Kingdom, Canada, and Mexico. USTR has also carved out a lengthy Annex A product exemption list and a separate reduced-rate mechanism for certain apparel and textile volumes, so brands should check their specific HTS classifications rather than assuming the headline rate applies to every SKU.
What This Means for DTC and Ecommerce Brands
Brands sourcing from Asia, particularly consumer electronics, beauty, and CPG companies, are most exposed to the new rate structure. A brand landing product from a country with no forced labor statute pays 12.5% starting July 24, on top of any applicable base duty rate and existing 232 exposure where relevant. That is a direct hit to landed cost math on every SKU sourced from an affected country.
Brands that already paid duties under the tariff actions the Supreme Court struck down have a path to recover some of that cost. U.S. Customs and Border Protection opened CAPE Phase 1 this spring, an electronic filing process through the ACE Portal for submitting IEEPA refund requests. Refunds are not automatic. Importers and brokers have to file a CAPE declaration with entry numbers to be considered.
For brands running duty and tariff models built around the old 10% flat rate, this is the moment to rebuild the assumptions country by country rather than applying a blanket adjustment.
How Brands Can Respond
Sourcing diversification is the lever most brands reach for first, and nearshoring conversations are accelerating again as a result. But tariff exposure is only one input. Brands also need real-time visibility into where inventory sits, what it cost to land, and how it is moving across channels once tariffs hit.
DCL Logistics gives clients that visibility through eFactory, its proprietary platform combining OMS, TMS, EDI, and a client portal into live inventory counts and order status across every facility. Brands can see exactly which SKUs and channels are absorbing the new tariff impact instead of estimating it after the fact. SelectShip, DCL’s carrier optimization engine, shops parcel and retail rates at dispatch to offset rising landed costs with 10-15% shipping savings on the outbound side.
Brands evaluating a 3PL partner in response to tariff pressure should ask specifically how that partner surfaces landed cost data by SKU, not just fulfillment cost. Talk to DCL about managing fulfillment through tariff volatility →
Frequently Asked Questions
When do the new Section 301 tariffs take effect?
The new Section 301 tariffs took effect at 12:01 a.m. ET on July 24, 2026, immediately replacing the 10% Section 122 global tariff that expired the same night.
Do the new tariffs stack on top of existing duties like Section 232 steel and aluminum tariffs?
The new Section 301 rates do not stack on top of existing Section 232 duties, so steel, aluminum, and copper imports remain at their current 50% rate. That exception is specific to Section 232. Goods from China remain subject to existing China-specific Section 301 tariffs and other applicable duties in addition to the new action.
How many countries are affected by the new Section 301 tariffs?
The new tariffs apply to 60 trading partner countries, covering an estimated 99.4% of total U.S. import volume.
What determines whether a country faces the 10% or 12.5% rate?
The rate is tied to findings from USTR forced labor investigations. Countries with forced labor laws already in place but deemed insufficiently enforced face a 10% rate. Countries without forced labor laws on the books face a 12.5% rate.
Are shipments already in transit exempt from the new tariffs?
Goods loaded onto a vessel before 12:01 a.m. ET on July 24, 2026 are exempt from the new duty, provided they are entered for consumption or withdrawn from a warehouse for consumption before July 28, 2026.
Can importers get refunds on tariffs paid under the invalidated IEEPA orders?
U.S. Customs and Border Protection has opened CAPE Phase 1, an electronic filing process through the ACE Portal for importers and brokers to request refunds on duties paid under the tariff actions the Supreme Court invalidated. Filing is required and refunds are not automatic.