Section 301 Tariffs

The U.S. has introduced a new round of Section 301 tariffs connected to its forced-labour enforcement policy. These measures took effect very quickly and may impact the landed cost  of EU-origin goods shipped to the United States. These measures are linked to a U.S. finding that the economies in scope have not done enough to prevent forced labour within their supply chains.

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What changed  

As of  July 24, 2026, U.S. Customs began applying new Section 301 “Forced Labor” duties on imports from 60 economies. 

These new duties were announced and implemented on short notice and are intended to replace the prior Section 122 global 10% tariffs, which were expiring around the same time. 

How the new duty rates work 

The additional tariff depends on whether the exporting economy has adopted and enforces a prohibition on imports produced with forced labour: 

  • 10% additional tariff applies to economies that have adopted or committed to adopt forced-labourimport prohibitions.
  • 12.5% additional tariff applies to economies that, in the U.S. government’s view,  have not adopted or enforced such prohibitions.

For the European Union, the U.S. applies a minimum combined tariff of 10% .  

In practice, the U.S. may calculate the duty so that the total duty reaches a minimum threshold: 

  • If your product’s normal U.S. duty rate (MFN) is below 10%, an extra duty may be added to bring the total up to 10%.
    • Example: MFN is 4% → an additional 6%  is added → total becomes 10%.
  • If your MFN duty is already above 10%, the MFN rate generally applies and no extra Section 301 duty is added.
    • Example: MFN is 15% → total remains 15%.

How it is applied at customs 

  • These duties are administered through Chapter 99 HTS codes.
  • Importers (and their brokers) will need to declare the correct Chapter 99 code in addition to the normal tariff classification to ensure customs applies the correct treatment.

Possible exclusions  

A number of product categories may be eligible for exclusions (depending on the product and how it’s classified), including items such as: 

  • There are general exemptions for beef, fruits, vegetables, coffee, and nuts. There are further exemptions for products from the European Union including cork, silk fabrics, and precious
  • Civil aircraft and related parts
  • Certain goods used in pharmaceutical applications
  • Donations and informational materials
  • Some raw materials, and certain textile/apparel programs (where applicable)

Eligibility is technical and depends on HTS classification,  country of origin, and the specific exclusion language. 

What we recommend for EU exporters 

To minimize surprises for your U.S. customers (and protect pricing and delivery commitments), we suggest: 

  1. Confirm HS/HTS classification
    Ensure the U.S. importer/broker is using the correct classification and any required Chapter 99 code.
  2. Estimate landed-cost impact early
    For EU-origin goods, assume a 10% minimum combined duty may apply unless the MFN rate is already higher.
  3. Review Incoterms and contract language
    Clarify who bears responsibility for tariffs/duties (e.g., DDP vs. DAP/EXW) and whether price adjustments are allowed.
  4. Check whether any exclusions apply
    If your products fall into areas like civil aviation or pharma-related use, it may be worth validating exclusion eligibility.
  5. Align on documentation

Make sure origin evidence and product descriptions are consistent, as U.S. entry treatment depends heavily on declared origin and correct classification. 

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BDO Global Trade Services

As Global Trade becomes more complex, and more subject to risk, we can advise on your trade implications in a Geo-Political context, assess the Risk Landscape and provide proactive duty planning, ensuring security of supply, and support in accessing new markets. In addition, we can provide Board Level briefings in order to support and advise in this new environment. If you think any of these updates could affect your business, don’t hesitate to contact us for further information or to arrange a consultation.

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