President Donald Trump is set to replace expiring temporary tariffs with a new, more durable trade regime centered on forced-labor enforcement. As 10 percent global levies expire on July 24, 2026, the administration plans to utilize Section 301 of the Trade Act of 1974 to impose targeted duties on 60 trading partners.
The Trump administration’s trade strategy is entering a new phase this week, pivoting from temporary emergency measures to a legal framework designed to withstand court challenges. Following the Supreme Court’s February 2026 decision to invalidate the administration’s sweeping reciprocal tariff regime, President Trump relied on Section 122 of the Trade Act of 1974 to maintain baseline duties. Those stopgap penalties are scheduled to lapse at 12:01 a.m. on Friday, July 24.
Transition to Section 301 Forced-Labor Tariffs
To fill the void left by the expiring 10 percent global tariffs, the Office of the U.S. Trade Representative (USTR) is preparing to implement new duties under Section 301 of the Trade Act of 1974. These measures target 60 nations that the administration identifies as failing to adequately prohibit or enforce bans on goods produced with forced labor.
“As early as tomorrow, the 23rd, USTR will issue final actions against 60 trading partners for their failure to address products made with forced labor.”
Jamieson Greer, U.S. Trade Representative, via Senate Finance Committee testimony
The proposed tariff structure creates a tiered system based on compliance. According to The Washington Post, nations that lack laws prohibiting such goods face a 12.5 percent tariff, while those with existing laws that fail to enforce them will be subject to 10 percent levies. CNBC reported that these duties are expected to cover approximately 99 percent of U.S. trade. Trade policy experts suggest this shift represents an attempt to institutionalize the administration’s protectionist goals using more resilient legal pathways.
Escalating Tensions with Canada and Brazil
While the administration recalibrates its global approach, bilateral trade disputes have intensified. On Monday, President Trump signed proclamations to impose 50 percent tariffs on a range of Canadian goods—including cement, wine, and beer—citing discriminatory practices. This move, executed under Section 338 of the Tariff Act of 1930, has been described by Canadian Prime Minister Mark Carney as a direct violation
of the USMCA, as The Hill noted.
Concurrently, a 25 percent tariff on select Brazilian imports took effect Wednesday, a decision linked by the administration to the prosecution of former President Jair Bolsonaro. While these 301 tariffs are specific, many consumer staples such as coffee and beef remain exempt.
Legal Resilience and Economic Consequences
The administration’s reliance on Section 301 is a direct response to the legal setbacks of 2025. After the Supreme Court struck down duties imposed via the International Emergency Economic Powers Act, the government faced significant financial repercussions.
Despite these losses, U.S. Trade Representative Jamieson Greer maintains that the fundamental objective remains unchanged.
“The specific authorities this administration is using have changed, but the trade strategy has not,”
Jamieson Greer, U.S. Trade Representative, via Senate Finance Committee testimony
While the administration points to a 4 percent reduction in the trade deficit over the first five months of 2026 as evidence of success, the economic impact on consumers remains a point of contention. As the July 24 deadline for the expiring Section 122 tariffs arrives, market participants and foreign governments are bracing for the next phase of the administration’s trade agenda, which includes ongoing investigations into excess manufacturing capacity across 16 major economies.
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