Overview
- U.S. Trade Representative issued the proposals on June 2, recommending a 25% Section 301 tariff for Brazil over alleged unfair trade practices and a 10–12.5% Section 301 schedule for about 60 countries tied to weak controls on goods made with forced labor.
- The Brazil plan includes carve-outs for select items such as beef, coffee, crude oil and fertilizer and sets a decision window that includes a July 15 deadline for the Brazil measure.
- For the wider forced-labor package USTR set public comment through July 6 and scheduled hearings on July 7 as it phases publication of its investigation findings.
- Japan says it secured U.S. confirmation that any new duties will not exceed the existing 15% bilateral cap, while China has publicly rejected the forced-labor rationale and warned against unilateral tariffs.
- The actions follow a February Supreme Court ruling that struck down the earlier reciprocal-tariff tool and the temporary 10% global tariff under Section 122, and they raise the prospect of negotiations, legal challenges and near-term effects for exporters and U.S. importers.