Under the short-term tax reduction benefits, two new and regular 301 tariffs will be implemented simultaneously, completely replacing the temporary tariffs that are about to expire, bringing long-term cost burdens to the industry. Among them, the special tariff plan targeting so-called forced labor has been finalized and completed public hearings. The policy covers 60 economies worldwide and sets differentiated tax rates. The Chinese mainland and Hong Kong of China are designated with an additional 12.5% tariff, while 14 economies that have fulfilled control commitments will only be subject to a 10% tax rate. Only energy, rare earths, and a few pharmaceutical products are exempt from taxation. The textile and clothing industry has no special exemption channels. 

The results of another 301 investigation into global manufacturing overcapacity are expected to be released within July, and are likely to further increase the cost pressure on textile and apparel exports. Morgan Stanley's calculation shows that after the implementation of the two sets of new regulations, the overall statutory average effective tariff in the United States will remain stable at the range of 9% - 10% for a long time, and the tariff barrier will officially shift from a short-term temporary policy to a long-term regular rule.