The 10–12.5% Section 301 duties preserve broad import pressure while rewarding selected Asian suppliers that increase their use of US cotton and textile inputs.
The United States has imposed new tariffs on imports from 60 trading partners, citing their failure to prohibit or effectively restrict trade in goods produced with forced labour.
Effective July 24, the measures apply to economies representing 99.4% of US imports. Most covered goods face additional duties of either 10% or 12.5%, subject to product exemptions and special treatment under existing trade arrangements. The action replaces an expiring temporary 10% global tariff with a longer-term framework under Section 301 of the Trade Act of 1974.
Apparel exporters face uneven rates
Pakistan, India, Bangladesh, Cambodia, Indonesia, Malaysia, Sri Lanka and the UK are among the economies assigned the 10% rate. Countries without qualifying forced-labour import prohibitions generally face 12.5%.
For the EU and Taiwan, combined most-favoured-nation and Section 301 duties are capped at 10%. Japan, South Korea and Switzerland receive a corresponding 12.5% cap. Apparel already attracts comparatively high US import duties, meaning the new levy can materially increase landed costs when added to existing tariff lines.
US inputs create a new sourcing advantage
Bangladesh, Cambodia, Indonesia and Malaysia will receive three-year tariff-rate quotas for specified textile and apparel products. Qualifying volumes will enter free of the new Section 301 tariff when linked to those countries’ purchases of US cotton or US textile inputs.
The quotas are expected to become operational by September 1. Until then, affected shipments from the four countries remain subject to the 10% tariff.
This mechanism directly links apparel market with access to fibre and fabric sourcing. It could strengthen demand for US cotton and yarn while encouraging Asian manufacturers to redesign bills of materials around quota eligibility.
Pakistan misses the quota benefit
Pakistan receives the lower 10% rate but is not included in the proposed textile tariff-rate quotas. Its exporters could therefore face a relative disadvantage against Bangladesh, Cambodia, Indonesia and Malaysia once eligible shipments from those countries begin entering without the additional duty.
The next competitive battleground will be documentation. Brands and factories will need precise origin records, cotton traceability and transaction-level evidence to qualify for preferential treatment. For Pakistan, the immediate policy priority is to seek comparable access while strengthening forced-labour due diligence and demonstrating credible enforcement across textile supply chains.
