IFPA: New tariffs include broad exemptions

The International Fresh Produce Association BB #:378962 posted this information on the new tariffs July 24, 2026:

On July 23, the United States Trade Representative (USTR) announced their final action on the Section 301 investigation into forced labor that went into effect on July 24. Tariffs ranging from 10% to 12.5% will be instituted on 60 economies, with a number of exemptions. These economies account for 99.4% of U.S. imports.

Tariff Rates

Countries subject to a 10% tariff include: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, the United Kingdom, and Trinidad and Tobago.

The European Union and Taiwan will see a total of 10% tariff, for products whose most favored nation (MFN) rate does not already exceed 10%.

Japan, Korea, and Switzerland will see a total of 12.5% tariff, for products whose most favored nation (MFN) rate does not already exceed 12.5%.

The remaining economies included in the investigation are subject to a 12.5% tariff rate.

These tariffs will compound on other tariffs in place, including 301 tariffs on Brazil and Section 338 tariffs on Canada.

Exemptions

The announcement outlines a range of exempted products, from either all duties, or on a country-by-country basis.

Broad exemptions include:

• All products subject to Section 232 tariffs
• Raw materials necessary for U.S. domestic production. This includes a wide range of produce seed varieties
• Products that cannot be grown or produced in sufficient quantities in the United States. This includes a wide range of produce items, particularly tropical products such as bananas, pineapples, mangos, avocados, etc.

The United Kingdom, all member states of the European Union, Switzerland, Malaysia, Cambodia, Guatemala, El Salvador, Argentina, Bangladesh, Taiwan, Indonesia, Ecuador, and Jordan all received additional country-specific exemptions.

These country-specific exemptions include:

• Products covered by the United States-Mexico-Canada Agreement (USMCA)
• Floriculture (including inputs) from Ecuador, Switzerland, Malaysia, Cambodia, Guatemala, Taiwan, Indonesia, and Jordan
• Fresh cut anthuriums, alstromeria, gysophilia, lilies, and snapdragons from Argentina

A full list of exemptions can be found in the Federal Register notice available here.

Note that florals and inputs from Colombia, the European Union, Costa Rica, Nicaragua, and El Salvador are NOT currently exempted.

IFPA encourages members to report any actual or anticipated impacts resulting from these tariffs by contacting usgr@freshproduce.com. Information shared by members helps us provide policymakers with real-world examples of how tariff actions affect the fresh produce and floral supply chain and strengthens our advocacy for continued exemptions.