The US applied Section 301 Forced Labor tariffs to specified goods imported from the EU and UK on July 24, 2026. The measures, 10–12.5% on affected categories, replace prior Section 122 rules. Textiles, electronics components, and certain consumer goods are among the categories in scope. The impact is inbound: goods entering the US from EU or UK supply chains. US brands expanding outbound into Europe are not affected on that leg.

Section 301 Forced Labor authority allows the US Trade Representative to apply tariffs to goods produced using forced labor, a category that has expanded in scope over recent years. The July 24 measures affect goods in the covered categories that are manufactured in or transiting through the EU and UK. Brands with EU or UK-based suppliers or contract manufacturers in the affected categories face higher input costs for goods entering the US from those sources.

The categories in scope include textiles, electronics components, and certain consumer goods. Brands in fashion, apparel, and consumer electronics with EU or UK sourcing relationships should audit which inputs originate from the covered category list and request updated cost projections from their European suppliers. The tariff applies at the point of US import. It is an inbound cost, not a tax on EU sales.

For US brands expanding into Europe, the direction most relevant to Expandly's customer base, the tariff does not affect the EU-bound leg of the operation. Products manufactured in the US and shipped to EU customers, or products sourced outside the covered categories, are not subject to these measures on the outbound journey. The risk sits in the inbound supply chain for brands that source inputs from EU or UK manufacturers.

The practical step for any US brand with EU or UK supply chain relationships in the affected categories: request a category classification review from your customs broker or trade counsel, and confirm whether your specific inputs are within the Section 301 Forced Labor scope. The USTR publishes the covered category list and it is the definitive reference.

For brands in Expandly's programme who are expanding from the US into Europe, the direction of trade is outbound, and outbound US-to-EU shipments are outside the scope of these measures. The compliance focus for European expansion remains EU market entry requirements: VAT, EPR, and product safety.