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U.S. Section 301 tariffs on 60 partners face backlash and legal challenge

U.S. Section 301 tariffs on 60 partners face backlash and legal challenge

New 10% to 12.5% forced-labor tariffs replaced a temporary global levy, drew lawsuits and foreign criticism, and left India saying 45% of its U.S.-bound exports are exempt while trade talks continue.

Fact Check
The primary USTR press release confirms the core facts: a Section 301 determination against 60 trading partners over failures to act on forced-labor goods, with proposed tariffs of 10% (for economies with some prohibitions) and 12.5% (for others). WSJ independently confirms USTR announced 10%-12.5% tariffs replacing a temporary global tariff expiring early Friday, designed to combat forced labor. The WilmerHale legal alert specifically confirms the expiring measure is the Section 122 global tariff set to expire July 24, 2026, and that the new tariffs replace levels similar to the struck-down IEEPA tariffs. CNBC corroborates the up-to-12.5% rate structure. The only minor nuance is that the USTR action was formally a June 2 'proposed' determination undergoing comment/hearing, while the claim frames the July 24 rollout as the replacement point coinciding with the Section 122 expiration—consistent with WSJ's reporting of the imminent announcement. All numeric, entity, and legal-authority details match.
Summary

The United States has imposed new Section 301 tariffs of 10% to 12.5% on goods from 60 trading partners, replacing a temporary 10% global tariff after the Supreme Court blocked the administration's earlier emergency-based approach. The forced-labor-related duties, which USTR said cover 99.4% of U.S. imports with broad exemptions, are already facing a legal challenge from two small businesses that argue Section 301 does not authorize such sweeping import surcharges. Trading partners pushed back, while India said its rate was set at 10% rather than the 12.5% proposed in June and that exemptions for products including generic pharmaceuticals, smartphones, steel, aluminium and auto parts mean about 45% of its exports to the United States are outside the new tariff's scope. U.S. Trade Representative Jamieson Greer said the administration's trade strategy remains unchanged and additional Section 301 and national-security tariff actions are expected, while India said it would continue negotiations on a bilateral trade agreement, including sector-specific issues such as textiles.

Terms & Concepts
  • Section 301 of the Trade Act of 1974: A U.S. trade law that allows tariffs or other penalties against foreign practices deemed unfair or harmful to U.S. commerce.
  • USTR: The Office of the U.S. Trade Representative, the U.S. agency leading the Section 301 action.
  • Section 232: A U.S. trade authority used to impose tariffs or restrictions on imports judged to affect national security.