The United States has introduced a new tariff framework following the expiry of its temporary 150-day import surcharge. While the legal basis for the additional duties has changed, the overall tariff position for many UK exporters remains broadly unchanged, with most affected UK-origin goods continuing to face an additional 10% duty.
The temporary 10% surcharge introduced under Section 122 of the Trade Act of 1974 ended on 24 July 2026, after reaching the maximum 150-day period permitted without an extension from Congress.
At the same time, the United States introduced new tariffs under Section 301 of the Trade Act of 1974 following investigations into the measures taken by 60 economies to prevent goods produced using forced labour from entering their markets.
The United Kingdom is among the economies covered by the new measures. For most affected UK-origin goods imported into the United States, the additional 10% duty continues to apply, although it is now imposed under Section 301 rather than the temporary Section 122 authority, unless a specific product exemption applies.
Why Did the Temporary Tariff End?
On 24 February 2026, the United States introduced a temporary 10% surcharge on a wide range of imported goods using powers available under Section 122 of the Trade Act of 1974.
Section 122 allows the US President to impose a temporary import surcharge in response to serious international payment problems. However, the legislation limits the measure to a maximum of 150 days unless Congress approves an extension.
The temporary surcharge therefore expired at 12:01 a.m. Eastern Daylight Time on 24 July 2026, as Section 122 limits such measures to a maximum of 150 days unless Congress authorises an extension.
This did not, however, result in the removal of additional tariffs from most US imports. A new set of measures under Section 301 took effect as the temporary surcharge ended.
For many UK exporters, the overall tariff position remains broadly unchanged, as the previous 10% surcharge has effectively been replaced by a 10% Section 301 duty rather than increased.
What Has Now Been Introduced?
Following investigations conducted by the Office of the United States Trade Representative (USTR), the United States has introduced new Section 301 tariffs affecting imports from 60 economies.
The investigations examined whether those economies had introduced and effectively enforced restrictions preventing the importation of goods produced wholly or partly using forced labour.
The new framework applies different treatment depending on the measures taken by each economy:
- An additional 10% Section 301 duty applies to goods from 18 economies, including the United Kingdom, Canada, India, Mexico and Pakistan.
- An additional 12.5% duty applies to goods from most of the other investigated economies.
- Different calculations apply to certain products originating in the European Union, Taiwan, Japan, South Korea and Switzerland, where the normal US tariff rate is taken into account.
The precise duty payable therefore depends on the country of origin, product classification and whether an exemption applies.
What Does This Mean for UK Exports?
The United Kingdom is among the economies subject to the additional 10% duty following the USTR’s assessment of the measures each economy has introduced to restrict imports produced using forced labour.
As a result, most affected goods of UK origin entering the United States will continue to face an additional 10% Section 301 duty.
This is an important distinction. The 10% duty is generally charged in addition to the normal US customs duty applicable to the product. It should not be assumed that 10% represents the total tariff payable.
The actual amount due will depend on several factors, including:
- The product’s US Harmonized Tariff Schedule classification.
- Its country of origin.
- The normal Most-Favoured-Nation tariff rate.
- Whether the goods fall within one of the published exemptions.
- Whether any other trade measures, including Section 232 tariffs, already apply.
Import duties are generally paid by the US importer of record. However, UK exporters could still experience commercial pressure if the additional cost affects customer demand, purchasing decisions or price negotiations.
Are Any UK Products Exempt?
Yes. The USTR has published both general exemptions and additional product-specific exemptions that apply to certain UK-origin goods.
General exemptions also apply to specified products and circumstances, including some goods already covered by Section 232 measures.
However, eligibility is based on detailed US tariff classifications rather than broad product descriptions.
Businesses should not assume that a product is exempt simply because it appears to fall within a general category. The relevant US HTSUS commodity code and the full wording of the exemption must be checked.
Why Should UK Businesses Pay Attention?
The most immediate commercial impact is likely to be felt by UK businesses exporting goods to customers in the United States.
Higher landed costs for US customers could:
- Place pressure on demand for affected British products.
- Lead customers to request lower prices or revised commercial terms.
- Affect the competitiveness of UK goods against domestic US alternatives.
- Influence decisions about sourcing, distribution and inventory.
- Create additional customs and classification requirements.
The effects may also extend beyond businesses trading directly with the US.
The United States is one of the world’s largest import markets. Changes to US tariffs can influence global manufacturing and sourcing decisions, with potential knock-on effects for freight demand, shipping capacity and international supply chains.
What Should UK Exporters Do?
UK exporters supplying the US should review their arrangements rather than assuming that the new duty will automatically be absorbed by their customer.
Businesses may wish to:
- Confirm the correct US HTSUS classification for each product.
- Check whether the goods appear on the published exemption lists.
- Establish who is acting as the importer of record.
- Review Incoterms and contractual responsibility for customs duties.
- Recalculate landed costs using the normal tariff and additional Section 301 duty.
- Speak with US customers about any impact on pricing and future orders.
- Monitor further announcements, as the measures may continue to evolve.
Product classification will be particularly important. An incorrect classification could lead to duties being underpaid or an available exemption being missed.
Wider Implications for Supply Chains
The immediate effect is the continuation of additional duties on many imports into the United States under a new legal framework.
Over time, however, the tariffs could influence wider supply-chain decisions as manufacturers and buyers compare the treatment of products originating in different economies.
Possible consequences include:
- Changes to manufacturing and sourcing locations.
- Shifts in trade volumes between major markets.
- Changes in demand across air and ocean freight routes.
- Additional scrutiny of product origin and customs documentation.
- More complex pricing and procurement decisions.
The scale of any wider impact will depend on how businesses respond and whether the US modifies the framework further.
How Beckchoice Can Help
Changes to international tariffs can quickly affect landed costs, customer relationships and supply-chain planning.
Beckchoice supports UK businesses with international freight forwarding, customs clearance and practical supply-chain guidance. Our experienced team can help customers review shipping arrangements, documentation and customs requirements as international trade policies continue to change.
If your business exports goods to the United States or relies on international supply chains, please contact our team to discuss how the latest developments could affect your operations.
Please note: This article is based on information available on 24 July 2026 and is provided for general guidance only. Tariff treatment depends on factors including product classification, origin, importer arrangements and any applicable exclusions or additional trade measures. Businesses should review the official US documentation and seek appropriate customs or professional advice before making commercial decisions.
References
The White House – Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems
https://www.whitehouse.gov/presidential-actions/2026/02/imposing-a-temporary-import-surcharge-to-address-fundamental-international-payments-problems/
Office of the United States Trade Representative – USTR Takes Action in Forced Labor Section 301 Investigations
https://ustr.gov/about/policy-offices/press-office/press-releases/2026/july/ustr-takes-action-forced-labor-section-301-investigations
Office of the United States Trade Representative – Final Federal Register Notice and Product Exemptions
https://ustr.gov/sites/default/files/files/Press/Releases/2026/FLIP%20301%20Investigation%20Final%20Action%20FRN%207-23-26%20FINAL.pdf
Reuters – Trump Imposes Forced-Labour Duties on 60 Trading Partners
https://www.reuters.com/world/us/trump-imposes-forced-labor-duties-60-trading-partners-as-10-us-tariffs-expire-2026-07-24/
Reuters – UK Says Latest US Tariffs Mean No Negative Change for British Businesses
https://www.reuters.com/world/uk/uk-says-latest-us-tariffs-mean-no-negative-change-british-businesses-2026-07-24/