TRADE ALERT – IMPORTS
HEADLINE	Emerging Tariff Framework Post-Section 122
DATE	July 6, 2026
AGENCY	Trump Administration U.S. Department of Commerce; the Office of the United States Trade Representative; U.S. Customs and Border Protection
BACKGROUND	Following the Supreme Court’s February 20, 2026 ruling that the International Emergency Economic Powers Act (“IEEPA”) does not give the President authority to impose tariffs, President Trump imposed a 10% tariff pursuant to Section 122 for a period of 150 days. See Trade Alert 65 for additional information on the Supreme Court ruling and Trade Alert 67 for additional information on the Section 122 tariffs.   The Section 122 tariffs will expire on July 24, 2026, and the Trump Administration has been expected to use alternative authorities, such as Section 301 and Section 232 to continue the administration’s tariff regime.   Following additional announcements regarding additional Section 301 investigations and new trade deals, the post-122 tariff regime is taking shape and provides an indication of what importers can expect beyond July.
DETAILS	I. Section 301 Investigations Summary: 1) Date of Initiation: 3/11/2026 Reasoning: Excess capacity Countries: China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India Rates: Not determined 2) Date of Initiation: 3/12/2026 Reasoning: Forced labor Countries: 60 Countries Rates: 10% or 12.5% 3) Date of Initiation: 5/29/2026 Reasoning: IP protection and enforcement Countries: Vietnam Rates: Not determined 4) Date of Initiation: 6/1/2026 Reasoning: IP protection and anti-corruption, environmental factors Countries: Brazil Rates: 25% On March 11, 2026, the US Trade Representative (“USTR”) initiated Section 301 investigations on China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India in connection with “foreign economies’ structural excess capacity and production in manufacturing sectors.” A hearing was held on May 5.   On March 12, 2026, the USTR also announced investigations on 60 countries in connection with forced labor practices. As of June 2, 2026, the USTR determined that these 60 countries failed “to impose and effectively enforce a prohibition on the importation of goods produced with forced labor,” and propose rates of 10% or 12.5%, depending on whether an economy has taken steps to address forced labor imports. The USTR has proposed a list of exempted products in Annex A to the Federal Register Notice. There is no specific effective date announced for these tariffs, although they are likely to coincide with the expiration of the 122 tariffs. The USTR has set a deadline to submit written public comments for July 6, and will convene public hearings on July 7.   The USTR has also initiated additional country-specific Section 301 investigations. On May 29, 2026, the USTR initiated an investigation of Vietnam to determine whether “Vietnam’s persistent failure to resolve long-standing concerns about intellectual property (IP) protection and enforcement is unreasonable or discriminatory and burdens or restricts U.S. commerce.” The USTR has set a deadline to submit written comments for July 2, 2026.   Additionally, on June 1, 2026, the USTR determined that “certain of Brazil’s acts, policies, and practices related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable and burden or restrict U.S. commerce.” As a result, the USTR has proposed additional tariff rate of 25% on all goods from Brazil, subject to exemptions identified in the Annex to the Federal Register Notice. The USTR has set a deadline to submit written public comments for July 1, and will convene public hearings on July 6.   It is not clear whether the proposed 301 tariffs will stack on any existing 301 tariffs, however, the proposed 301 tariffs will not stack with the Section 232 tariffs. Further Section 301 determinations are expected in the coming weeks.   II. Taiwan Trade Deal   Since 2025, the U.S. has imposed Section 232 tariffs on numerous products, including auto parts, steel, aluminum, copper, timber, lumber, and certain wood products. These tariffs range from 25% to 50%.    On January 15, 2026, the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO) signed the Memorandum of Understanding (“MOU”), where Taiwan committed to investing $250 billion in the U.S. semiconductor, energy, and artificial intelligence industries, and the U.S. promised, among other things, to limit the Section 232 tariffs applied to certain Taiwanese goods to 15%.   Starting on May 1, 2026, entries of Taiwanese products previously subject to 25% Section 232 tariffs on auto parts and timber, lumber, and wood products will be subject to a duty rate of 15%. In addition, Taiwanese auto parts and aircraft components will no longer be subject to any Section 232 tariffs on aluminum, steel or copper.   Because the implementation applies retroactively, refunds will be available for duties paid on qualifying entries made since May 1, 2026.   III. Future Actions   Together, these actions reflect a post-122 tariff regime where the Trump Administration will initiate additional tariffs to match the IEEPA tariff rates, while continuing to negotiate new trade deals with individual countries that will potentially partially mitigate these additional tariffs.
CITE	Federal Register – Federal Register :: Initiation of Section 301 Investigations: Acts, Policies, and Practices of Certain Economies Relating to Structural Excess Capacity and Production in Manufacturing Sectors   Federal Register – Federal Register :: Initiation of Section 301 Investigations of Acts, Policies, and Practices of Various Economies Related to the Failure To Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced With Forced Labor     Federal Register – Federal Register :: Initiation of Section 301 Investigation and Request for Public Comments: Vietnam’s Acts, Policies, and Practices Related to Intellectual Property Protection and Enforcement     Federal Register – Federal Register :: Implementing Certain Tariff-Related Elements of a Trade and Security Agreement Between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States

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