Every Section 301 duty now carries a potential refund claim

The lawsuit changes how importers should assess the new tariff regime. Although the duties are now in force, their legal future remains uncertain. Every dollar of Section *** duty paid at the US border now carries a contingent claim for a refund, including interest, if the tariffs are ultimately invalidated.

Section *** creates a new global cost hierarchy

Under the new regime, the United States imposes an additional ** per cent or **.* per cent duty on imports from ** economies, covering nearly all US imports, according to the Office of the United States Trade Representative (USTR). For apparel and textile sourcing teams, the distinction between the two tariff tiers has immediate commercial significance.

According to US Customs and Border Protection (CBP) guidance message CSMS #********, India, Bangladesh, Cambodia, Sri Lanka and Pakistan fall within the ** per cent tier, while China and Vietnam are subject to the higher **.* per cent rate. Textile and apparel goods qualifying under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), along with United States-Mexico-Canada Agreement (USMCA)-compliant goods from Canada and Mexico, remain exempt. USTR has also announced tariff-rate quotas (TRQs), allowing lower-duty access for certain apparel imports from Bangladesh, Cambodia, Indonesia and Malaysia.