July 24, 2026

U.S. Hits Imports from 60 Countries — Including Canada — with New Section 301 Tariffs of 10–12.5%, Starting July 24; CUSMA-Originating Goods Exempt

The Office of the U.S. Trade Representative announced on the evening of Wednesday, July 23, that it is moving ahead with Section 301 tariffs of 10% to 12.5% on goods from 60 countries (including Canada), effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Friday, July 24.

Canadian Goods Are Subject but CUSMA-qualifying Goods Are Exempt

Canadian goods face the lower 10% rate (heading 9903.05.29) because Canada has adopted a forced labour import ban, though USTR found Canada “has failed to effectively enforce” it. Critically, under heading 9903.05.93, the 301 duty does not apply to products of Canada entered free of duty under CUSMA/USMCA.

Rates by country: 10% applies to countries with a forced labor import prohibition or reciprocal-trade commitment (including Canada, Mexico, the UK, India, and others); 12.5% applies to countries without one (including China, Brazil, Vietnam, Australia, and others). For the EU, Japan, Korea, Taiwan, and Switzerland, the tariff works as a top-up: goods whose regular MFN rate already meets the threshold (10% for the EU and Taiwan; 12.5% for Japan, Korea, and Switzerland) face no additional duty, while lower-duty goods are brought up to that combined rate.

The new tariff applies to all products, with few exceptions:

  • In-transit goods (9903.05.85): loaded on a vessel and in transit on the final mode of transport before 12:01 a.m. ET July 24, and entered before 12:01 a.m. ET July 28.
  • HTS exemption list (9903.05.86) — roughly four pages of subheadings applying to all 60 countries, concentrated in: beef and offal; fresh and dried produce, pulses, nuts, coffee, tea, spices, cocoa, sugar, and certain juices and preparations; minerals, ores, and concentrates; coal, petroleum, natural gas, and electrical energy; fertilizers; inorganic and organic chemicals, including rare earths; vitamins, hormones, antibiotics, and medicaments (Chs. 29–30); natural rubber; certain wood products; precious metals including gold and platinum; ferroalloys and base metals (copper, nickel, cobalt, aluminum, zinc, tin, tungsten, and others); computers and parts (8471, 8473); smartphones and network equipment (8517); semiconductors and integrated circuits (8541–8542); and artworks and antiques (Ch. 97).
  • Specified articles (9903.05.87): a short list of 16 items including seeds for sowing, frozen tropical fruit, açaí and coconut water products, and certain religious-use goods.
  • Civil aircraft, engines, parts, and ground flight simulators (9903.05.88).
  • Articles for pharmaceutical applications (9903.05.89).
  • Goods already subject to Section 232 tariffs (9903.05.90): steel, aluminum, copper and derivatives; passenger vehicles and light trucks and their parts; medium- and heavy-duty vehicles and parts; wood products; and semiconductor articles.
  • Donations and informational materials (9903.05.91–.92).
  • CUSMA duty-free goods of Canada (9903.05.93) and USMCA duty-free goods of Mexico (9903.05.94), plus country-specific exemptions for the UK, EU, Switzerland, Taiwan, Malaysia, and several others, and CAFTA-DR duty-free textiles and apparel from six Central American/Caribbean countries (9903.05.95).
  • Chapter 98 entries are exempt, except that duties apply to the value of repairs, alterations, or processing under 9802.00.40/.50/.60 and to the assembled value less U.S. content under 9802.00.80.

The full HTS exemption list is in the CBP attachment, and the complete action is set out in the Federal Register notice. Please reach out to Carson with questions.

Please reach out to Carson for assistance