• David Taylor, global commercial director at Mark 3 International, says application of Section 301 could mean new challenges for the world’s exporters.

On July 24th, the United States put into effect a new policy designed to fight modern slavery.

As part of the Office of the United States Trade Representative’s (USTR) Section 301 of the Trade Act of 1974, rates of 10 per cent have been applied to economies that have banned or pledged to ban forced-labour imports and 12.5 per cent for those that have not.

According to the US Government, “under Section 301, Congress grants the Office of the United States Trade Representative (USTR) a range of responsibilities and authorities to investigate and take action (e.g., impose a tariff) to enforce U.S. rights under trade agreements or respond to certain foreign trade practices.”

Currently, 60 economies have been targeted for, as the USTR put it, “their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.”

There are 12 countries facing the 10 per cent tariff, including the UK, Canada, Mexico and Pakistan; while 48 nations including Australia, New Zealand, Norway and China face a rate of 12.5 per cent.

Since returning to the White House in January 2025, President Trump’s second administration has altered US tariff policy over 50 times (approximately one change per 11 days). According to the Tax Foundation, “The applied tariff rate peaked in April 2025, shortly after the “Liberation Day” tariffs, and has fluctuated significantly since then.”

This change is expected to cause a range of challenges for UK exporters.

David Taylor, global commercial director at ecommerce logistics specialists Mark 3 International, said; “While addressing the appalling use of forced labour is incredibly important, it is possible that this legislation has been introduced to deflect Congressional attention away from scrutinising the White House’s wider economic policy.

“In the last 18 months we have seen a raft of changes to US trade policy, each of which has had serious ramifications for the UK’s exporters. This latest challenge, like those before it, is further compounded by the limited readiness of many major carriers and postal operators to adapt to a transformation at this scale and speed.

“As America’s domestic politics continues to become more complex, it is likely that further tariffs will follow, adding yet greater international uncertainty.”

The implementation of Section 301 comes only days after U.S. Customs and Border Protection (CBP) introduced new postal informal entry procedures.

Taylor continues, “The removal of de minimis exceptions, the new regulations for ensuring all US imports are correctly declared, and the administration’s use of tariffs combine to make it difficult to trade internationally, especially for those businesses that don’t have access to a trusted logistics partner.

“Beyond the broader point, there are immediate consequences too. For example, as part of the Section 301 announcement, there is only a four-day grace period for goods already in transit. This can significantly impact the ability to trade with the US, which remains the largest economy in the world.”

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