US Section 301 Tariffs and UFLPA Expansion Reshape Compliance Landscape for China Textile and Apparel Exports
Date: August 7, 2026 | Washington, D.C.
The United States has imposed new Section 301 tariffs of 12.5 percent on imports from China and Hong Kong effective July 24, 2026, and on July 31 added 43 Chinese companies to the UFLPA Entity List, including several major textile and cotton producers, raising supply-chain compliance pressure on Chinese textile and apparel exporters at a time when H1 2026 exports reached $146.01 billion.
Key Highlights:
- Section 301 duties: USTR announced final action imposing 10 percent or 12.5 percent additional ad valorem tariffs on most imports from 60 economies effective July 24, 2026, replacing the expiring Section 122 global tariffs; China and Hong Kong are subject to 12.5 percent.
- UFLPA expansion: DHS added 43 Chinese companies to the UFLPA Entity List on July 31, the largest single expansion since the list was created in 2022; the list now covers 187 entities, up about 30 percent, and took effect for CBP enforcement on August 3.
- Textile industry impact: Newly listed textile firms include Shandong Weiqiao Pioneering Group, Shandong Weiqiao Textile Technology, Henan Tongzhou Cotton Industry and Fujian Septwolves Industry, raising due-diligence requirements for US apparel importers.
New Tariff Framework:
The Section 301 action follows USTR investigations into the forced-labor import-prohibition practices of 60 economies. The duties apply on top of existing MFN rates for most imports entered for consumption on or after July 24, 2026, with specified exemptions for goods in transit (loaded before July 24 and entered before July 28), Section 232 products, civil aircraft, pharmaceuticals, donations, USMCA-qualifying goods and CAFTA-DR textiles. USTR also directed three-year tariff-rate quotas for Bangladesh, Cambodia, Indonesia and Malaysia, intended to encourage use of US-origin cotton and textile inputs.
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