Overview
- The tariffs took effect Friday, July 24, and apply under Section 301 of the Trade Act after temporary measures lapsed.
- USTR set two tiers of duties—roughly 10 percent and 12.5 percent—covering about 99% of U.S. imports with specified product carve-outs and exemptions for some USMCA and national security items.
- Multiple small businesses have filed suits in the U.S. Court of International Trade within days of the announcement, arguing the forced‑labor rationale is a pretext and that the administration preset rates without following statutory procedures.
- Importers say the duties will sharply raise costs and retail prices, with one company warning its tariff bill could jump from about $2 million to $20–25 million a year if the measures remain in place.
- The move has provoked diplomatic protests and prompted some countries to adopt forced‑labor import bans while USTR signals more Section 301 probes and other trade tools could be used next.