New Section 301 tariffs and more proposed tariffs

New Section 301 tariff framework

On July 24, the across-the-board U.S. Section 122 tariffs expired and the administration immediately replaced them with Section 301 tariffs tied to screening for forced labor in supply chains, creating a more durable but still unsettled tariff structure.

The new framework adds 10% or 12.5% on top of existing duties for goods from 60 countries. Qualified goods covered by the U.S.-Mexico-Canada Agreement (USMCA) are fully exempt, as are goods already subject to Section 232 commodity-specific tariffs.

This preserves tariff pressure while the U.S. administration is expected to continue rebuilding the prior country-specific tariff rates, likely using bilateral trade deals going forward. This reinforces that high-quality customs brokerage is a core supply chain advantage.

Litigation against the new Section 301 framework has already started, but any resolution of these court proceedings is likely months away at the earliest.

How to interpret the prospect of more U.S. tariffs

Surrounding the new Section 301 framework, the U.S. administration has proposed other new tariffs along varying timelines. Here’s what to expect:

Canada

While USMCA negotiations remain active, proposed 50% tariffs target Canadian goods including autos, dairy, and alcoholic beverages. Section 338 tariffs are meant to offset discrimination against American products, and no president has imposed them since they were authorized in the Tariff Act of 1930.

The targeted scope and delayed implementation, with an effective date of August 19, 2026, suggest the tariffs are intended to bring Canada back to the negotiating table, giving the U.S. administration flexibility to escalate or de-escalate.

Europe

Several European countries tax revenue earned by large technology companies, and the United States has threatened 25% Section 301 tariffs on selected imports in response. The tariffs would target specific consumer products rather than all goods from those countries. For supply chains, the biggest challenge is uncertainty, as the tariffs could be activated, delayed, or suspended depending on the course of trade negotiations.

Imported generic pharmaceuticals

The U.S. administration announced it would levy a 100% tariff on this category of medications starting on August 1, 2028, and increasing to 200% as of August 1, 2029. For now, the supply chain impact is limited, but the proposal signals continued use of tariffs to push reshoring in strategic sectors.

USMCA talks point to a longer road ahead

Recent developments suggest businesses should prepare for USMCA negotiations to extend well beyond this year. After a July 1 deadline passed without the three countries renewing the trade agreement for another six years, it reverts to an annual review but side agreements can be made at any time.

U.S. Trade Representative Jamieson Greer told lawmakers in July that the administration is aiming to reach interim arrangements with Canada and Mexico by the end of 2026, while more complex issues such as automotive rules of origin, labor standards, and environmental provisions could take longer to resolve.

Meanwhile, U.S. and Mexican officials concluded a third negotiating round in Mexico City and agreed to continue discussions in Washington in September, signaling that talks remain active but far from complete. Negotiations between the United States and Canada appear to be progressing more slowly.

One of the biggest unresolved issues is automotive content requirements, which help determine how vehicles and parts qualify for preferential treatment under USMCA. Changes to those rules could affect sourcing decisions across North America.

For supply chains, the main takeaway is that trade policy uncertainty is likely to remain a factor into 2027. While cross-border freight flows continue to move normally, companies strengthen supplier visibility, validate country-of-origin claims, and understand where Chinese content may exist within their North American supply chains as negotiations continue.

Other recent U.S. customs changes

Pharmaceuticals from the UK

As of July 31, 2026, a tariff on patented pharmaceuticals and related ingredients imported from the United Kingdom has been reduced from 10% to 0%. This action removes the additional tariff previously imposed on these products.

Quartz products

The United States is set to impose a four-year tariff-rate quota on imports of quartz products like kitchen countertops to protect domestic production. This means higher tariffs will apply once imports surpass the quota level. To help U.S. industry adjust to import competition, these levels will increase and duty rates will decrease over the four-year period.

The measure takes effect August 15, 2026, and targets most countries, excluding Canada, Mexico, Australia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Colombia, Panama, Peru, Israel, Jordan, South Korea, Singapore, and certain developing countries.

Forced labor

On August 3, 2026, The Department of Homeland Security added 43 companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. These companies operate across sectors including aluminum, apparel, copper, cotton, tomatoes, pharmaceuticals, seafood, and transportation infrastructure, and are alleged to have sourced materials from Xinjiang or participated in labor transfer programs involving persecuted ethnic groups.

Effective August 3, 2026, U.S. Customs and Border Protection will bar goods produced by these companies from entering the United States.

Visit our Trade & Tariff Insights page for the latest news, perspectives, and resources from our customs and trade policy experts.

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