The future direction of US tariff policy is once again under scrutiny as the temporary 10% surcharge on global imports reaches its expiry deadline.
Introduced under Section 122 of the Trade Act, the measure followed the Supreme Court’s decision in February to overturn tariffs previously imposed through the International Emergency Economic Powers Act.
Section 122 allows the US government to apply temporary import restrictions for up to 150 days without approval from Congress. With that period ending at 12:01am US Eastern Time on July 24, the Trump administration is now looking to alternative legal powers to continue its tariff programme.
Sections 232, 301 and 338 are expected to feature prominently in the next phase. These provisions allow tariffs to be imposed in response to national security concerns, unfair trade practices and perceived discrimination against American commerce.
The transition towards more targeted measures has already started. A 25% tariff on many Brazilian imports took effect this week under Section 301, while a 50% tariff on selected Canadian products has been announced under Section 338 and is scheduled to begin next month.
China is also expected to face renewed scrutiny, while exporters from the UK and European Union may be exposed to further changes as the administration develops its new approach.
With global supply chains facing another period of uncertainty, Global Freight Services continues to monitor developments closely and will provide further updates as the position becomes clearer.