Full Breakdown
Trump Administration Poised to Replace Expiring 10% Global Tariffs with New Section 301 Duties
7/23/2026, 4:50:54 AM
Core Event – Expiration of Temporary Tariffs and Anticipated New Measures
President Donald Trump’s 10 % temporary global tariff under Section 122 of the Trade Act of 1974 expires at midnight Eastern Time on July 24. U.S. Trade Representative Jamieson Greer says the administration will soon introduce new tariffs on roughly 60 trading partners for forced-labor enforcement gaps. Proposed duties would range from 10 % to 12.5 %.
Background & Context
In February, the Supreme Court struck down the administration’s use of the International Emergency Economic Powers Act for “reciprocal” tariffs. The government then invoked Section 122 for a 10 % surcharge, now ending.
During the interim, the White House imposed targeted tariffs: a 25 % duty on selected Brazilian goods on July 15 (Section 301) and 50 % tariffs on Canadian products on July 20 (Section 338).
Timeline
- July 15 – 25 % tariffs on Brazilian imports (Section 301).
- July 20 – 50 % tariffs on Canadian wine, dairy, cement (Section 338).
- July 21 – Greer previews “soon” new tariff action.
- July 24 – Expiration of the 10 % temporary global tariff (Section 122).
Data & Statistics
- USTR proposal covers 60 economies, about 99 % of U.S. foreign trade.
- 10 % tariffs would apply to 16 economies with forced-labor bans (e.g., Canada, EU, Mexico).
- 12.5 % tariffs would target more than 40 major economies lacking effective bans, including China, India, Japan.
- The Kiel Institute estimates 96 % of the tariff burden falls on U.S. importers and consumers.
- The Tax Foundation projects an average increase of roughly $700 per U.S. household.
Official Statements & Responses
Greer emphasized that “the U.S. has laws to prohibit trading goods with forced labor” and noted many jurisdictions lack or do not enforce such laws.
A White House release framed the 50 % Canadian tariffs as a response to “discriminatory treatment” of U.S. commerce, aiming to protect “hard-working Americans.”
The European Union argued that tariffs on forced-labor grounds “lack legitimacy.”
South Korea’s trade deal caps any U.S. tariff at 15 %; Greer said he will respect that ceiling.
Conflicting Reports & Gaps
Analyses differ on consumer impact: the Kiel Institute attributes most of the burden to importers and consumers, while the Tax Foundation quantifies it as an average $700 household cost. Neither source provides a timeline for the new Section 301 duties.
Verbatim Quotes
What’s Next
Greer will brief Congress in the coming days and travel to Mexico for USMCA discussions. The administration is also advancing Section 301 investigations into “overcapacity” for 16 economies, which could raise duties after public comment periods. If forced-labor tariffs are finalized before July 24, the United States would avoid a gap in its tariff framework; otherwise, timing remains pending.
