The U.S. Trade Representative proposed new Section 301 tariffs on June 2 as a replacement for the 10% Section 122 global tariff set to expire around July 24. The bifurcated structure imposes 10% tariffs on 15 core trading partners that have made bilateral structural concessions, and 12.5% on 45 other countries and regions including Hong Kong, China. The proposal, rooted in forced labor and industrial subsidy investigations rather than emergency economic powers, faces a public comment deadline of July 6 and hearings starting July 7. Separately, updated Section 232 tariffs on aluminum, steel, and copper derivatives maintain 50% baseline rates with preferential rates for products meeting 85% U.S.-melted-and-poured origin requirements. Procurement teams must immediately verify product classifications against USTR exemption lists and secure multi-tier supply chain traceability documentation.
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