USTR has proposed Section 301 forced-labor duties of 10% and 12.5% — under USTR's categories, 14 economies fall in the 10% tier and 46 in the 12.5% default tier — covering most major U.S. sourcing countries, with no built-in expiration and no statutory rate cap. Written comments closed July 6, 2026, hearings began July 7, and post-hearing rebuttal comments close July 16, 2026 (docket USTR-2026-0265). Unlike the temporary Section 122 surcharge, which sunsets July 24, these duties would remain until USTR modifies or terminates them. Importers sourcing from Vietnam, India, Thailand, South Korea, or the other investigated economies should model exposure now.
On June 2, 2026, the Office of the United States Trade Representative announced determinations and proposed action in 60 Section 301 investigations related to whether trading partners have failed to impose or effectively enforce prohibitions on imports made with forced labor. USTR’s press release set written comments for July 6, 2026, with hearings starting July 7. Both dates have now passed: the record is in its final phase, and post-hearing rebuttal comments close July 16, 2026.
The proposal matters because it can add a new duty layer on top of ordinary MFN duty, China Section 301 duties, Section 232, anti-dumping or countervailing duties, and existing forced-labor detention risk under the UFLPA. For importers, the July comment window is a trigger to review the import file before the government finalizes the action.
What USTR proposed
USTR says it determined that the failure of the investigated economies to impose and effectively enforce forced-labor import prohibitions is actionable under Section 301. As a proposed response, USTR described additional duties on products of the investigated economies, subject to exceptions in the Federal Register notice.
| Proposal element | What importers should know |
|---|---|
| Scope | 60 investigations covering economies that USTR says failed to impose and/or effectively enforce prohibitions on forced-labor goods. |
| Proposed rate | 10% for the 14 economies with a forced-labor import prohibition, a reciprocal-trade commitment, or a partial regime — and 12.5% for the other 46 economies, subject to USTR’s final action and the Annex A exclusions. |
| Key dates | Written comments closed July 6, 2026. Hearings began July 7. Post-hearing rebuttal comments close July 16, 2026 (docket USTR-2026-0265). |
| Duration | No built-in expiration and no statutory rate cap. Unlike the Section 122 surcharge (150-day limit, 15% statutory ceiling), Section 301 duties remain in place until modified or terminated, subject to periodic review. |
| Textiles | USTR also described a textile mechanism that could allow certain volumes of apparel and textile imports from certain economies at a reduced Section 301 tariff rate. |
This is a proposed action, not a final tariff schedule. Do not update customer pricing, sourcing, or declared origin solely on headlines. Start with the entry file: HTS, origin, supplier documents, and any existing forced-labor due-diligence records.
Where the proposal stands: rebuttal comments close July 16
The Federal Register notice sets post-hearing rebuttal comments at five days after the last day of the public hearings — which puts the close of the record at July 16, 2026. Rebuttals are filed through USTR’s electronic portal under docket USTR-2026-0265.
- March 12, 2026 — USTR initiates 60 Section 301 investigations.
- June 2–5, 2026 — Determinations announced; proposed duties published in the Federal Register.
- July 6, 2026 — Written comments closed.
- July 7, 2026 — Public hearings began before the Section 301 Committee.
- July 16, 2026 — Post-hearing rebuttal comments close. The public record ends here.
- After July 16 — USTR can announce final action at any time. No implementation date has been announced.
For importers who source from investigated economies and want to contest scope, rates, or product coverage — or respond to testimony from the hearings — the rebuttal window is the last formal opportunity to get on the record. After July 16, the next event is USTR’s final determination.
The Section 122 handoff: a temporary 10% ends as a no-sunset 12.5% proposal advances
The timing matters more than most importers have registered. The Section 122 import surcharge — the temporary 10% line that has applied since February 24 — sunsets by statute on July 24, 2026. Section 122 is capped at 15% and roughly 150 days by law. The proposed Section 301 forced-labor duties have neither limit: no expiration date, no rate ceiling, and no requirement of congressional action to stay in place.
If the proposal is finalized as written, an importer sourcing from one of the 46 default-tier economies would see a temporary 10% surcharge replaced by a 12.5% duty with no built-in sunset — potentially within weeks of the Section 122 line disappearing. Modeling July 24 as a landed-cost improvement without modeling the Section 301 proposal is how importers get surprised.
The 54 economies USTR found have no forced-labor import prohibition at all include Vietnam, India, Thailand, South Korea, Cambodia, Bangladesh, Malaysia, Taiwan, Japan, and the United Kingdom — most of the major non-China apparel, electronics, and component sourcing bases. The six economies found to have a prohibition without effective enforcement are Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan. Under USTR’s categories, 14 economies fall in the 10% tier and the remaining 46 face the 12.5% default. Confirm your origin economy’s proposed tier against the notice before modeling.
Which importers should care first?
The broad proposal means importers should not treat this as only a China or apparel issue. The first review should focus on lanes where forced-labor scrutiny, tariff stacking, and country-of-origin documentation already matter.
- Textiles and apparel importers sourcing from multiple Asia, Latin America, or Middle East economies.
- Electronics, components, batteries, and solar-adjacent goods with complex supplier chains.
- Food, consumer goods, and housewares importers using contract manufacturers or trading companies.
- Importers that changed country-of-origin claims after tariff increases or forced-labor enforcement actions.
- Foreign importers of record whose supplier documents, bond, IOR structure, and broker files may face higher CBP scrutiny.
What to review before July 16 — and before July 24
1. HTS code and country-of-origin support
List the HTS codes, manufacturing countries, supplier names, and entry dates for affected lanes. If a product’s declared origin changed after tariffs increased, confirm the origin analysis is documented and not just tariff-driven.
2. Supplier documentation and forced-labor due diligence
Review purchase orders, production records, supplier affidavits, factory locations, and any forced-labor questionnaires. UFLPA detention risk and Section 301 forced-labor duties are different tools, but the documentation overlap is significant.
3. Tariff-stacking exposure
A 10% or 12.5% layer can be the difference between a viable and unviable margin if the product already carries Section 301, Section 232, AD/CVD, or a temporary surcharge. Model the stack by HTS code, not by product category. See our Tariff Stacking Report 2026 for the mechanics.
4. Textile and apparel volume planning
Because USTR referenced a possible textile mechanism, apparel and textile importers should separate products by HTS chapter, supplier economy, origin support, and shipment timing. If a reduced-rate mechanism becomes final, the importer that already has clean data can react faster.
5. Rebuttal strategy
The written-comment window closed July 6, but post-hearing rebuttal comments remain open through July 16. Useful rebuttals are specific: they respond to hearing testimony, identify affected HTS codes and sourcing countries, quantify operational impact, and propose alternatives. For legal submissions, coordinate with trade counsel; for entry data and duty modeling, your broker should have the import-file facts ready.
Get a Section 301 exposure analysis before the record closes July 16.
Send us your affected HTS codes, supplier countries, and recent entries. We will map which lanes face the proposed 12.5% default rate, what your stack looks like after Section 122 sunsets on July 24, and where origin or supplier documentation needs work before USTR finalizes.
- HTS and origin review by supplier lane
- Tariff-stacking model for 10% and 12.5% scenarios
- Forced-labor documentation checklist
- Broker-file review before CBP scrutiny
How this differs from UFLPA detention risk
The UFLPA is a detention-and-admissibility regime focused on goods with a Xinjiang or forced-labor nexus. The Section 301 proposal is a trade-remedy duty proposal tied to foreign economies’ forced-labor import prohibition and enforcement regimes. They are not the same program, but they can point to the same operational problem: importers need better supplier-chain evidence.
If your company already has a UFLPA documentation package, review whether it also supports origin, supplier identity, and tariff-stacking decisions. If it does not, the import file may still be exposed even if a shipment has not been detained.
Frequently asked importer questions
When are rebuttal comments due?
Post-hearing rebuttal comments close July 16, 2026, through USTR’s electronic portal under docket USTR-2026-0265 — the date that follows USTR’s hearing schedule and the Federal Register rule requiring rebuttals five days after the last day of hearings. This is the last formal input before USTR finalizes the action.
Do the proposed Section 301 forced-labor duties expire?
No. The proposal has no built-in sunset and no statutory rate cap. Unlike the Section 122 surcharge — limited by law to 15% and roughly 150 days, and scheduled to end July 24, 2026 — Section 301 duties remain in place until modified or terminated, subject to periodic statutory review.
Are these forced-labor Section 301 duties final?
No. USTR proposed the responsive action and requested comments. The rates, product scope, exceptions, and timing can change before final action — but the public record closes with rebuttal comments on July 16, and USTR can announce final action at any point after that.
Do the proposed duties only affect China?
No. USTR identified 60 investigated economies. The 54 found to have no forced-labor import prohibition include Vietnam, India, Thailand, South Korea, Cambodia, Bangladesh, Malaysia, Taiwan, Japan, and the United Kingdom. Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan were found to have prohibitions without effective enforcement.
Should I change sourcing before the duties are finalized?
Not based on the proposal alone. First confirm which HTS codes and supplier countries are actually exposed, what existing duty layers apply, and whether the alternative source has better documentation and origin support.
What should I ask my broker for?
Ask for a list of affected entries by HTS code, country of origin, supplier, Chapter 99 duty line, existing duty layers, and any UFLPA or forced-labor documentation already on file. That is the base file for comments, planning, or internal review.
The bottom line
The July 16 rebuttal deadline is the last formal input before USTR finalizes a duty layer that — unlike the temporary surcharges importers have absorbed this year — has no expiration date. The practical question is whether a 10% or 12.5% forced-labor duty could hit your lanes, what your stack looks like once Section 122 sunsets on July 24, and whether your origin and supplier documentation can survive review.
Tariffs are only one lane of forced-labor risk. CBP is also detaining goods directly under Withhold Release Orders — including the June 2026 orders against two Jordanian garment factories. See our guide to WROs and the UFLPA for how detentions work and what documentation survives them.
Importers that wait for the final notice may still have time to comply, but they will be slower to price, source, or adjust shipment timing. Use the remaining window to turn scattered entry files into a defensible import plan.
Sources: USTR, “USTR Makes Findings and Proposes Action in 60 Section 301 Investigations Relating to Failures to Take Action on Trade in Forced Labor Goods,” June 2, 2026; Federal Register, “Notice of Determinations and Request for Comments Concerning Actions in Section 301 Investigations,” June 5, 2026; USTR electronic portal docket USTR-2026-0265 (written and rebuttal comments). Rates, tiers, and dates as of July 13, 2026 — confirm against the notice and your exact HTS lines before filing or modeling. This article is operational guidance for importers and is not legal advice.