Section 301 Tariff Expansion 2026: 60 Countries Now Covered
The tariff map changed again on July 24, 2026 — and the August 6 updates from customs and logistics providers confirm the new framework is now the operative one for U.S. importers. The across-the-board 10% global tariff (Section 122) expired at 12:01 a.m. ET on July 24 and was immediately replaced by a new Section 301 forced-labor import screening framework covering 60 economies, with additional duties of 10% or 12.5% on top of existing rates. The expansion touches roughly 99.4% of U.S. import value by customs value, and it changes the answer to "what do I pay on this shipment?" for most origin countries — including Canada, Mexico, and the UK.
This guide explains what changed, which countries pay what, what's exempt, and what importers should check before their next entry — including the Canada 50% Section 338 tariffs arriving August 19, 2026 and the threatened 25% EU digital-services-tax action that is proposed but not yet in effect. Use the Tariff Calculator 2026 to estimate your own duty and landed cost under the new rates.
What Changed: Section 122 Expired, Section 301 Took Over
The July 24, 2026 transition was a straight swap: the flat 10% global "reciprocal" tariff that ran under Section 122 expired, and the new Section 301 framework — built on forced-labor import screening investigations — went into effect the same minute. USTR had initiated 60 investigations on March 12, 2026, issued determinations on June 2, 2026 (54 economies failed to impose or enforce an import ban on forced-labor goods; 6 failed to effectively enforce), and published the final action on July 23, 2026. The new rates have applied to entries since July 24, 2026.
The 60-Country Rate Structure: 10%, 12.5%, and 5 MFN-Capped Economies
The new Section 301 rate is additional to the product's normal Column-1/MFN duty — with one exception: for five economies the combined MFN-plus-301 rate is capped.
| Tier | Rate | How many | Examples |
|---|---|---|---|
| 10% additive | 10% on top of MFN | 17 economies | Argentina, Bangladesh, Canada, India, Indonesia, Malaysia, Mexico, Pakistan, UK |
| 12.5% additive | 12.5% on top of MFN | 38 economies | Australia, Brazil, China, Colombia, Philippines, Russia, Saudi Arabia, Thailand, Vietnam |
| MFN-capped | Combined cap: EU/Taiwan 10%, Japan/South Korea/Switzerland 12.5% | 5 economies | EU, Taiwan, Japan, South Korea, Switzerland |
For the capped economies, the Section 301 amount tops the combined rate up to the cap: if the product's MFN duty is below the cap, the 301 rate fills the gap; if MFN is at or above the cap, the 301 rate is zero. China is a 12.5% additive economy — meaning Chinese goods face the new 12.5% on top of the pre-existing China-specific Section 301 tariffs. Brazil has a separate 25% Section 301 action (digital trade, ethanol, IP) that should not be confused with its 12.5% forced-labor rate. For the full country-by-country picture, see our US tariff rates by country guide and the Section 301 China tracker.
What's Exempt From the New Section 301 Rates
- USMCA-qualified goods from Canada and Mexico — fully exempt from the 301 rate (subject to the separate Canada Section 338 rules below).
- Section 232 articles (steel, aluminum, copper, vehicles, wood, semiconductors) — exempt, no stacking with 301.
- Pharmaceuticals, civil aircraft, donations, and informational materials — covered by general exemption headings (Chapter 99, subchapter III).
- CAFTA-DR textiles — exempt under heading 9903.05.95.
- In-transit goods — loaded before July 24 and entered by July 28, 2026.
Country-specific carve-outs also apply for Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Jordan, Malaysia, Taiwan, Ecuador, Argentina, and others — check the Chapter 99 headings (9903.05.20 through 9903.06.21) for your origin. Our tariff exemption list walks through the categories in detail.
Canada: 50% Section 338 Tariffs Start August 19, 2026
Separate from the Section 301 matrix, the U.S. used Section 338 of the Tariff Act of 1930 for the first time in history to impose an additional 50% duty on Canadian motor vehicles, alcoholic beverages, and dairy — "wine to hockey sticks to cement," as the White House put it. The proclamations were signed July 20, 2026 and take effect August 19, 2026, with no in-transit grace period. See the full explainer on the Canada 50% tariffs — which products, what's exempt, how to calculate your costs.
The critical detail for importers: the Section 338 tariffs apply even to USMCA-qualifying Canadian goods, unlike the Section 301 rates. A USMCA-qualified Canadian auto part faces 0% Section 301 but still faces the 50% Section 338 exposure. Exempt categories include energy, potash, Section 232 goods, fish, and critical minerals.
Europe: 25% Section 301 Tariffs Threatened, Not In Effect
The U.S. has threatened 25% Section 301 tariffs on selected European imports in response to digital-services taxes on large tech companies. The action is product-specific and activation is uncertain — it could be activated, delayed, or suspended depending on negotiations. Do not file customs entries assuming a 25% EU rate exists today: the operative EU rate is the 10% cap inside the Section 301 forced-labor matrix. That distinction matters for anyone pricing European consumer goods right now.
USMCA: Annual Review, Interim Deals Targeted by End of 2026
The July 1, 2026 six-year renewal deadline passed without agreement, moving the USMCA into an annual review (the agreement can run up to July 2036 absent extension; formal withdrawal is considered unlikely). USTR is aiming for interim arrangements with Canada and Mexico by the end of 2026, with the more complex issues — automotive rules of origin, labor, environment — taking longer. U.S.–Mexico round 4 is set for Washington in September; U.S.–Canada talks are progressing more slowly. Trade-policy uncertainty is expected to persist into 2027, though cross-border freight flows are still moving normally. See our USMCA qualification guide for what you need to claim the preference.
What Importers Should Do Now
- Verify country of origin on every product — the new rates are economy-specific, not a flat global number.
- Confirm USMCA qualification for Canadian and Mexican goods before assuming the exemption applies.
- Check Chapter 99 headings (9903.05.20–9903.06.21) for your origin economy and any carve-out or general exemption.
- Check the in-transit window for shipments that left before July 24 but may not have entered by July 28.
- Model the Canada Section 338 exposure separately for autos, alcohol, and dairy — it applies even to USMCA goods.
- Run the numbers with the Tariff Calculator 2026 before you book or file.
Calculate Your Tariff Under the New Section 301 Rates
Enter your product category, origin country, and shipment value to see the estimated duty and total landed cost — including the 10%/12.5% Section 301 tiers and the Canada Section 338 flag.
Frequently Asked Questions
Q: When did the new Section 301 forced-labor tariffs take effect?
A: At 12:01 a.m. ET on July 24, 2026, when the Section 122 10% global tariff expired and the Section 301 framework replaced it. Goods loaded before that time and entered for consumption by 12:01 a.m. ET on July 28, 2026 remain in the in-transit exception.
Q: Which countries are covered by the Section 301 expansion?
A: 60 economies: 17 at a 10% additive rate (including Canada, Mexico, India, UK), 38 at 12.5% (including China, Vietnam, Australia, Brazil, Russia), and 5 MFN-capped (EU and Taiwan at 10%; Japan, South Korea, Switzerland at 12.5%).
Q: Are USMCA goods subject to the new Section 301 tariffs?
A: USMCA-qualified goods are fully exempt from the Section 301 rates, and Section 232 articles are exempt (no stacking). But Canada's separate 50% Section 338 tariffs on autos, alcohol, and dairy — effective August 19, 2026 — apply even to USMCA-qualifying goods.
Q: What is the Canada 50% Section 338 tariff?
A: Three Section 338 proclamations impose an additional 50% duty on Canadian motor vehicles, alcoholic beverages, and dairy, effective August 19, 2026 (30 days after the July 20 signing). It is the first use of Section 338 in history, has no USMCA exemption, and exempts energy, potash, Section 232 goods, fish, and critical minerals.
Q: Is the EU facing new Section 301 tariffs?
A: A 25% Section 301 action over digital-services taxes is threatened but not in effect. The operative EU rate today is the 10% cap in the forced-labor matrix. Watch the negotiations before pricing in 25%.
Q: How do I calculate my tariff under the new Section 301 rates?
A: Verify country of origin, confirm USMCA/Section 232 exemptions, check the Chapter 99 heading for your economy, and confirm the in-transit window. Then run your product and shipment value through the Tariff Calculator 2026 for an estimated duty and landed cost.
Sources: C.H. Robinson Customs Update (Aug 6, 2026); USTR Press Release "USTR Takes Action on Forced Labor Section 301 Investigations" (July 23, 2026); USTR Fact Sheet (July 23, 2026); USTR Federal Register Notice (pre-publication, July 23, 2026); White House Fact Sheet: Section 338 tariffs on Canada (July 20, 2026); DCL Logistics "New Section 301 Tariffs 2026"; Customs and International Trade Law (Diaz) Section 301 analysis (July 24, 2026); Baker Botts Trump Tariff Tracker (July 2, 2026). Verified against the research brief dated August 7, 2026.