On July 23, 2026, the Office of the U.S. Trade Representative (USTR) announced a final Section 301 action, imposing tariffs on 60 economies for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor. As a result, USTR is imposing additional tariffs on all products of the investigated economy, with certain exemptions as provided in Annexes I and II. • 10%: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom. • 10% net of MFN rate: For non-exempted products from European Union and Taiwan, if MFN rate is less than 10%, the sum of the MFN rate and Section 301 tariff shall be 10%; if MFN rate is greater than or equal to 10%, the Section 301 tariff shall be 0%. • 12.5% net of MFN rate: For non-exempted products from Japan, Korea, and Switzerland, if MFN rate is less than 12.5%, the sum of the MFN rate and Section 301 tariff shall be 12.5%; if MFN rate is greater than or equal to 12.5%, the Section 301 tariff shall be 0%. • 12.5%: All other investigated economies. 𝗨𝗦𝗠𝗖𝗔 𝗧𝗿𝗲𝗮𝘁𝗺𝗲𝗻𝘁 Products of Canada and Mexico that qualify for duty-free treatment under the USMCA are exempt from the new forced labor Section 301 tariffs. In addition, certain USMCA-qualifying passenger vehicle and light truck parts remain eligible for the import adjustment offset, excluding automobile knock-down kits and parts compilations. https://lnkd.in/ghn7c_Xx

The U.S. has announced a new 50% tariff under Section 338 of the Tariff Act of 1930, with implementation scheduled for August 19, 2026. Unlike many recent trade actions, these tariffs are being applied under a little-used legal authority rather than Section 301 or Section 232. What supply chain professionals need to know: 📌 USMCA doesn't automatically protect affected goods. If your product falls within one of the targeted categories, qualifying under USMCA may not exempt it from these new duties. 📌 Section 232 products remain excluded. Products already subject to Section 232 tariffs (such as many steel and aluminum products) are generally excluded from these new Section 338 duties. That's an important distinction for manufacturers and distributors working with steel components. 📌 Importers should review their product classifications now. Companies shipping to the U.S. should determine whether any of their products fall within the newly targeted tariff lists before the August 19 effective date. Why this matters For Canadian manufacturers and exporters, this isn't just about paying higher duties.