President Donald Trump's administration faces a critical timeline as the temporary legal authority under Section 122 of the 1974 Trade Act that imposed a 10% "global tariff" is set to expire on Friday, July 24. The temporary measure was implemented in February as a quick response after the US Supreme Court struck down his initial blanket tariff policy.
To replace the 150-day levy that is about to expire, the White House is preparing to invoke Section 301 to keep the tariff structure at roughly the same or higher levels permanently. The latest investigation into forced labor issues recommends introducing a 10% tariff on goods from 14 countries plus the European Union (EU), and 12.5% on 45 other countries including China.
The policy shift has sparked front-loading activity in which local businesses launch early import purchases to avoid future cost increases. Analysts predict that US imports will decline by around 5 to 6 percent in August and September as the stockpiling phase subsides.
In addition to the forced labor issue, Trump has continued to threaten new unilateral tariffs, including a proposal to increase levies on Canada due to cross-border wildfire smoke pollution. The US administration has also announced a 25% tariff on Brazil under Section 301 on the grounds of market access barriers for digital trade.
Although the enforcement of Section 301 is seen as a stronger legal basis, the official notice document shows that there is a wide list of exemptions. Among the sectors expected to receive tax relief are textiles, energy products, rare earth minerals, selected food commodities, and aircraft components.
