The Trump administration has begun implementing a new series of tariffs using Section 301 of the Trade Act of 1974, following a Supreme Court ruling that struck down previous duties imposed under national emergency laws. The new measures include duties of 10% to 12.5% on imports from 60 countries, citing concerns over the enforcement of forced-labor bans. According to the U.S. Trade Representative (USTR), these duties cover 99.4% of U.S. imports and serve as a replacement for a 10% temporary global tariff that expired on July 24.
U.S. Trade Representative Jamieson Greer informed the Senate Finance Committee this week that the administration intends to use available legal authorities to reshore production and reduce the trade deficit. Greer stated that the new tariff layers would not exceed caps established in recent trade negotiations, which include 15% for the European Union, Japan, and South Korea, and approximately 20% for China, in addition to existing 25% duties. The administration is also conducting investigations into excess industrial capacity and alleged intellectual property theft.
The transition to Section 301 duties follows legal challenges to the administration's initial trade actions. The "Liberation Day" tariffs, which collected $166 billion in revenue, were overturned by the Supreme Court, necessitating refunds to importers. A separate 10% global tariff assessed $31 billion through early July but is currently facing a federal court challenge. Small businesses filed a new lawsuit on July 24 challenging the forced-labor duties, though legal experts noted that Section 301 has historically maintained a stronger standing in court than emergency-based trade actions.
While some business leaders, such as Bissell Inc. CEO Mark Bissell, stated they had anticipated and prepared for rates in the 10-15% range, other trade actions remain fluid. On July 20, the administration announced 50% duties on specific Canadian goods, including dairy and beer, citing a lack of trade concessions from Ottawa. Additionally, the administration has requested investigations into strategic sectors such as semiconductors, robotics, and industrial machinery to determine if further national security protections are required.