The US administration has given a clear signal that a new wave of import tariffs will be implemented in the near future. According to US Trade Representative (USTR) Jamieson Greer, the official announcement on the implementation of the latest duties is expected to follow shortly after discussions with Congress and stakeholders are completed.
This move was taken when the 10% “global tariff” under Section 122 of the Trade Act of 1974, which was implemented last February, was scheduled to expire at 12:01 ET this Friday. This automatic cancellation occurred following no action from Congress to extend the 150-day temporary policy period.
To avoid loosening trade controls, the White House has already devised a replacement strategy through Section 301 of the same act. The new proposal, which was tabled in early June, would see tariffs of up to 12.5% imposed on imports from 60 economies around the world.
The main justification behind the enforcement of Section 301 is the US’s crackdown on global forced labor. Greer pointed out that most international trading partners do not have strict laws or fail to enforce controls on forced labor practices in their supply chains.
Overall, the new tariff coverage is projected to directly impact about 99% of total US international trade activity. The administration sees this broad scale of action as a necessary step to address serious structural imbalances in global trade.
