United States Implements Section 301 Duties on 60 Trading Partners
The Donald Trump administration replaced temporary global tariffs with a durable Section 301 duty structure targeting 60 trading partners to avoid legal challenges.
The Donald Trump administration replaced a temporary 10% global tariff with a more durable set of duties under Section 301 of the Trade Act of 1974 on July 24. This transition follows a Supreme Court of the United States ruling that struck down previous tariffs imposed under emergency economic powers.
The new tariffs cover the top 60 U.S. trading partners, representing approximately 99.4% of American imports. A tiered rate system distinguishes between nations based on their human rights policies: countries that have adopted or committed to import bans on goods made with forced labor face a 10% rate, while the remaining 46 countries are subject to a 12.5% rate.
By utilizing Section 301, the administration has placed the tariffs on firmer legal footing, making them more difficult to challenge in court. This move establishes a long-term cost for import-reliant businesses, particularly within the electronics, furniture, footwear, and apparel sectors.