United States Imposes New Section 301 Tariffs On 99 Percent Of Imports

On July 23, U.S. Trade Representative Jamieson Greer announced the Trump administration will impose far-reaching new Section 301 tariffs on nearly 90 countries. He cited the countries’ use of forced labor as justification for the penalties. The tariffs, which took effect on July 24, range from 10 percent to 12.5 percent and will affect about 99 percent of all U.S. imports. S

ome imports, including products covered by the United States-Mexico-Canada Agreement and oil and gas, are exempt. Additionally, aluminum and steel, which already Section 232 tariffs, will not be subject to the new penalties.

Products from countries that have entered into reciprocal trade agreements with the United States, including countries in the European Union, will be subject to the lower rate. Products from all other countries, including China, the United Kingdom, and Japan, will will be subject to the 12.5 percent penalty.

Ambassador Greer’s announcement came just hours before Section 122 tariffs expired on July 24. (As a reminder, the Trump administration imposed this surcharge on Feb. 24 following the U.S. Supreme Court’s decision that the International Emergency Economic Powers Act does not authorize the president to impose tariffs. The Section 122 penalties applied to imports from most countries, but included exemptions for articles subject to Section 232 tariffs, USMCA-compliant goods from Canada and Mexico, and other products.)

As The Hill reported, two small businesses already have launched a lawsuit against the new Section 301 tariffs. The businesses argued, “Section 301 does not permit USTR to substitute a generalized assertion that forced labor is harmful, unfair, or economically distortive worldwide for the statute’s required determination concerning an identified foreign act, policy, or practice and its burden or restriction on United States commerce.” Read more about the new Section 301 tariffs here and here.