New U.S. Forced Labor Tariffs Are Now in Effect

The United States has now officially implemented a new round of Section 301 tariffs aimed at countries that the U.S. believes have not taken sufficient action to prevent the import or manufacture of goods produced using forced labor. Effective 24 July 2026, imports from around 60 countries are now subject to an additional 10% or 12.5% tariff, depending on the country of origin. The new tariffs apply based on where the product was manufactured, not where it is shipped from or purchased.

For vehicle importers, this means the country in which the vehicle was built has become even more important when estimating import costs. As an example, an Australian-manufactured passenger vehicle that is not otherwise exempt will now attract the standard 2.5% U.S. import duty, plus an additional 12.5% Section 301 tariff, resulting in a total duty of 15%.

To see other examples applicable to you, please refer to the below table.

For those of you with shipments already booked with us, there is a transit exception. To qualify, the vehicle must already have been on the vessel bound for the United States before July 24, 2026, and must also be entered with U.S. Customs before July 28, 2026. Because the window is only four days, the exception is expected to apply only to shipments already very close to the United States when the tariffs took effect.

Alternatively, if you’re in the planning stage of importing a vehicle into the United States and would like clarity on how these new tariffs affect your shipment, our team is happy to help. Simply let us know the vehicle details and we’ll confirm the estimated duty before you commit to shipping

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About the Author
Joseph GirandaInternational Shipping Specialist - CFR Classic

Joey has spent his entire teen and adult life in cars. Joey’s father owned a Jeep store, and Joey had his own used car lot that he ran himself from age 22 until I was 30. At 30 years old, Joey got “out of” the car business and joined CFR Rinkens. Joey started when there were only 9 people at CFR, but the company grew to over 150 employees during his time there.

When Joey started, CFR Rinkens was shipping about 40 vehicles per week from Los Angeles. Joey established locations in Houston, Miami, and New York and within the first year, CFR went to shipping 150 cars per week. Joey started as a customer service rep and later moved up to sales manager, operations manager, and marketing manager.

Joey then moved to Europe for two years and spent the entire time traveling through Europe meeting with clients. In 2022, Joey and his partners purchased CFR Classic from CFR Rinkens and he returned to California to watch over the operation more closely.

Last updated: July 26, 2026Published: July 26, 2026
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