Overview
- The Office of the U.S. Trade Representative has proposed two tiers of Section 301 tariffs, generally 10% and 12.5%, covering goods from 60 countries and opened a public comment period with hearings scheduled in early July.
- USTR concluded that the 60 partners either lack a full ban on forced‑labour imports or fail to enforce existing prohibitions, and the proposal lists carve‑outs for items such as semiconductors, pharmaceuticals, critical minerals and goods already under other U.S. tariffs.
- The proposal follows USTR’s June 2 findings and has prompted swift condemnation from the European Union, China, Australia and other governments, which say the measures are unjustified and risk straining alliances.
- Industry analysts warn the broad, volume‑based tariffs could raise U.S. consumer prices and disrupt Southeast Asian and global supply chains, with importers and trade groups preparing comments and potential legal challenges.
- The move is a legal pivot after the Supreme Court struck down emergency tariffs, and USTR’s final decision may change rates or coverage before a likely late‑July start while courts could promptly review the administrative record.