Overview
- USTR released findings on Tuesday and proposed two-tier tariffs of generally 10% for 14 jurisdictions and 12.5% for 46 others after concluding those 60 trading partners lack bans or effective enforcement against goods made with forced labour.
- The proposal is a deliberate legal pivot following the Supreme Court ruling that struck down the administration's emergency-based tariffs, with USTR using Section 301 of the Trade Act to try to restore broad duties.
- The measure is not final: USTR set a public comment deadline of July 6 and public hearings starting July 7, and it can change product carve-outs, rates, or country lists before any final determination.
- Governments from the EU to China and allies such as Australia have rejected USTR’s findings and warned the move could damage diplomatic ties and disrupt global supply chains for sectors from apparel to medical devices.
- Trade lawyers say final tariffs would face close judicial review because USTR must show specific unlawful acts, an adequate factual record, and proportional remedies, and economists warn the duties could raise consumer prices in the United States.