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MemoMemorandumTrump 47 · R

Presidential Memorandum

Actions by the United States in the Investigations Under Section 301 of the Trade Act of 1974 of the Acts, Policies, and Practices of 60 Economies Related to the Failure of Each Economy To Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced With Forced Labor

This memorandum directs the U.S. Trade Representative to impose Section 301 tariffs on goods from 60 economies—10% on countries with partial forced-labor import prohibitions or trade commitments, 12.5% on all others, with MFN-adjusted rates for EU, Japan, Korea, Switzerland, and Taiwan. It also establishes product exemptions and directs future tariff-rate quotas (TRQs) for textiles and apparel from Bangladesh, Cambodia, Indonesia, and Malaysia to incentivize use of U.S. cotton and textile inputs.

Federal Register Open PDF 91 FR 47717

Impact dates

  1. Federal Register notice on TRQ establishment and effective date

  2. 19d ago

    TRQs to become feasible for establishment

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

AgricultureShipping & logisticsTechnology & softwareOther industrial

Mechanisms

TariffQuotaSubsidy / incentive

Role pressure

  • AdverseImporter — Faces 10-12.5% tariff increases on broad range of goods from 60 economies, with complex exemption and MFN-adjustment calculations
  • MixedDomestic producer — U.S. cotton and textile producers gain TRQ-driven demand from Bangladesh, Cambodia, Indonesia, Malaysia; but raw material users may face higher costs if inputs tariffed
  • MixedDownstream manufacturer — Apparel/textile manufacturers in targeted ASEAN countries get TRQ access conditional on U.S. input use; others face higher costs or supply disruptions from exemptions for critical raw materials
  • AdverseTrading-partner exporter — Broad tariffs on 60 economies; ASEAN textile exporters face conditional TRQ access; China, Russia, many others face 12.5% flat rate
  • UncertainProject developer — Unclear impact on infrastructure or energy projects dependent on exempted raw materials

Geographies

USCNEUJPKRTWMXCAINVNMYTH

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

MMM3MGOOGLAlphabetAAPLAppleADMArcher Daniels MidlandBGBungeCATCaterpillarLNGCheniere EnergyCTVACortevaDACDanaosFDXFedExFCXFreeport-McMoRanGEVGE VernovaHONHoneywellQQQInvesco QQQ TrustMATXMatsonMETAMeta PlatformsMSFTMicrosoftNVDANVIDIAORCLOracleSPYSPDR S&P 500 ETFTSNTyson FoodsUPSUPSZTOZTO Express

Confidence: high · Policy alerts

Key directives

  • Impose 10% ad valorem tariffs on goods of Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, UK, Trinidad and Tobago
  • Impose MFN-adjusted tariffs capping total duties at 10% for EU/Taiwan and 12.5% for Japan/Korea/Switzerland
  • Impose 12.5% tariffs on all other investigated economies
  • Exempt products listed in Annex based on five specified criteria
  • Establish TRQs for Bangladesh, Cambodia, Indonesia, Malaysia for U.S. textile goods and U.S. cotton with 3-year initial duration
  • Modify HTSUS to implement tariffs, exemptions, and TRQs
  • Publish Federal Register notice on TRQ establishment and effective date

Who is ordered

Timeline

Immediate

  • Tariffs directed to be imposed; HTSUS modifications for exemptions

Near term (90d)

  • TRQs to become feasible by September 1, 2026 per Trade Representative assessment; Federal Register notice on TRQ establishment

Long term

  • 3-year initial duration for TRQs once established; potential modification or termination of tariffs/exemptions/TRQs under Section 307 of Trade Act of 1974

Risks & tensions

  • Broad 60-economy scope creates significant trade friction and potential retaliation
  • Exemption criteria in section 1(b) leave substantial discretion to USTR, creating uncertainty for importers
  • Severability provisions suggest anticipation of legal challenges to individual tariff actions
  • Textile TRQs designed to shift supply chains away from China but may strain relations with targeted ASEAN partners
  • MFN-adjusted rates for EU, Japan, Korea, Switzerland, Taiwan reflect negotiated trade agreement constraints
  • September 1 feasibility date for TRQs is tight and may slip; text says 'not feasible at this time'
Presidential Memorandum: Actions by the United States in the Investigations Under Section 301 of the Trade Act of 1974 of the Acts, Policies, and Practices of 60 Economies Related to the Failure of Each Economy To Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced With Forced Labor · Executive Orders