Overview
- President Trump enacted Section 301 tariffs that take effect July 24, 2026, applying 10% or 12.5% duties to imports from about 60 trading partners and covering roughly 99.4% of U.S. imports.
- The White House tied the two‑tier 10%–12.5% schedule to forced‑labor enforcement, with the lower rate for countries that committed to bans and the higher rate for others after USTR investigations launched in March.
- The administration separately proclaimed 50% tariffs on over 500 Canadian products under the rarely used Section 338, scheduled to begin August 19, 2026, a step likely to prompt distinct legal and diplomatic fights.
- U.S. firms and trade lawyers have filed immediate lawsuits in the U.S. Court of International Trade and legal experts say both the breadth of Section 301 action and the first‑time use of Section 338 leave the duties vulnerable to court challenges.
- Businesses are reworking plans now by shifting suppliers, accelerating imports from Canada before August 19, auditing contracts and insurance, and preparing to pass higher costs to consumers while USTR signals more sectoral probes ahead.