U.S. Tariffs Update – June 5, 2026

Overview, Analysis and Recommendations

Tariffs and tariffs enforcement have been the focus of recent actions by the United States Trade Representative (USTR) and President Donald Trump. The impacts will first affect importers, who directly pay the tariffs involved and must comply with associated requirements. However, there are also significant implications for manufacturers, retailers and other parties using, selling and purchasing imported products.

The proposed new tariffs add additional cost and complexity to an already complicated import environment. Parties purchasing significant amounts of imported products should examine existing contracts to determine their direct and indirect financial obligations related to the payment of import tariffs (including the potential for refund if any tariffs are later overturned by the courts).

In addition, the increased focus on enforcement creates the potential for even greater disruption of the supply chain for imported products. We increasingly see imported products that do not comply with tariff requirements being stopped by U.S. Customs and Border Protection (CBP) at the border who then require importers to return the products to the country of origin. We advise clients to carefully consider the security and reliability of their supply chain of imported products. Where the imported products are important to the operation of a business, the business owner should consider monitoring, analyzing and requiring complete documentation from their overseas suppliers and importers that the intended to be imported products comply fully with tariff requirements. Otherwise, severe business disruptions may result.

New Proposed Tariffs under Section 301

On June 2, the USTR determined under Section 301 of the Trade Act of 1974 that the acts, policies, and practices of 60 countries related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is unreasonable and burdens or restricts U.S. commerce. The USTR prepared a report, "Acts, Policies, and Practices of Various Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor," (PDF) to support the findings in each investigation.

In response to its determinations in the investigations, the USTR has proposed additional tariff duties on all products of the investigated economies, except for an extensive list of products provided in Annex A to the Federal Register notice (PDF). For those countries that impose a forced labor import prohibition, that have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade, or economies that have imposed a partial regime with the effect of preventing the importation of certain forced labor goods, the USTR proposed 10% as the rate of additional duties. For all other economies, the USTR proposed 12.5% as the rate of additional duty. The USTR also proposed a textile mechanism that would allow for a certain volume of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate.

Interested parties should review the list of affected countries and the list of products exempted from the proposed tariffs (included in the Federal Register notice link above).

Executive Order Strengthening Enforcement of Customs Laws

On June 3, Trump signed an Executive Order intended to strengthen the enforcement of U.S. customs laws. The Order directs the Department of Homeland Security (DHS) and CBP to strengthen several requirements for importers of record (IORs). Examples include:

• Increasing bonding requirements and requiring IORs to always maintain a minimum level of tangible domestic assets, bonding or both;
• Subjecting foreign IORs to heightened requirements for formal entry;
• Authorizing only U.S. IORs to file informal entry;
• Imposing a “good standing” requirement on all IORs; and 
• Increasing vetting procedures for all individuals and entities that conduct activities directly related to the importation of goods.

The Order also directs:

• DHS and CBP to establish various disclosure and certification requirements designed to combat duty evasion and noncompliance with supply chain rules.
• DHS and CBP to increase enforcement of existing customs laws, including by establishing a 50% minimum penalty floor limiting CBP’s discretion to reduce the assessed penalties on importers who violate customs laws. 
• DHS to enhance the seizure and disposal of non-compliant imports, including by reducing regulatory burdens to voluntary abandonment and authorizing third-party disposal.
• DHS to enhance transparency in customs, including by publishing annual transparency reports.
• DHS to propose legislation to strengthen customs enforcement.

For more information or questions, contact Yan (Jackson) Guo, Michael Meagher or Robert Oberlies.