The United States has replaced its temporary tariff regime with new duties ranging from 10% to 12.5%, targeting 60 countries that account for 99% of US goods imports. This move highlights Washington’s commitment to maintaining a robust tariff strategy while laying the groundwork for potential future trade measures.
Key Figures
- 60 countries are affected by the new Section 301 tariffs ranging from 10% to 12.5%.
- 99% of US goods imports are covered by the targeted countries.
- 50% tariffs announced on $20 billion worth of Canadian imports, scheduled to take effect on 19 August 2026.
The End of a Temporary Regime, Not the End of Tariff Pressure
The expiration of the temporary Section 122 tariffs1 does not signal a retreat in US trade policy. These duties expired on 24 July but were immediately replaced by new Section 3012,tariffs of 10% to 12.5% applied to 60 countries representing 99% of US goods imports. This transition demonstrates Washington’s determination to preserve a high level of tariff protection despite recent legal and regulatory challenges.
The immediate impact on average US customs duties is expected to remain limited. The new tariffs are not automatically stacked on top of existing duties and therefore do not significantly increase the overall tariff burden on imports. However, they clearly demonstrate the US administration’s ability to adapt its trade policy tools in order to sustain its broader economic and strategic objectives.
A Stronger Legal Foundation for US Tariffs
Section 301 has previously been used by the United States to impose tariffs, most notably on China during the first Trump administration. Unlike the IEEPA framework, which has faced legal scrutiny due to the absence of explicit tariff-authorising language, Section 301 provides the White House with a more established and legally defensible basis for trade action.
However, a stronger legal framework does not eliminate the possibility of future disputes. Washington justifies these tariffs by citing insufficient controls on imports linked to forced labour in the targeted countries. Importers and affected businesses may challenge this rationale, particularly given the broad range of countries included under the measure.
This decision is not merely a technical renewal of existing duties. Above all, it demonstrates Washington’s determination to transform a contested regime into a more sustainable tariff framework. For businesses, the message is clear: the risk of US tariffs remains high, even when a measure is due to expire.
explains Marcos Carias, North America Economist at Coface.
Additional Tariffs Could Follow
The new 10% to 12.5% tariffs re-establish a common tariff framework across a significant share of US imports, but they do not fully recreate the previous regime. Earlier measures also included additional surcharges targeting specific countries and products. Washington may seek to restore this second layer of trade restrictions in the coming months.
A separate Section 301 investigation is already underway, focusing on structural overcapacity across 16 economies, including China, the European Union, Japan, South Korea, Taiwan, India, Vietnam, Mexico, and several Southeast Asian countries. While the timeline and potential tariff levels remain uncertain, the investigation could lead to more targeted trade measures against specific economies.
Additional sector-specific investigations are also in progress, covering industries such as aerospace, drones, medical devices, robotics, industrial machinery, wind turbines, critical minerals, and polysilicon. Although the exact outcomes remain difficult to predict, these investigations confirm that US trade and tariff policy continues to evolve.
Canada: A Clear Example of Growing Trade Pressure
The increasing pressure on Canada illustrates this broader trend. The United States has announced new 50% tariffs on $20 billion worth of Canadian imports, equal to approximately 5.2% of Canada’s exports to the US market. These measures are expected to take effect on 19 August 2026.
At first glance, the measure appears to serve as a negotiating tool within ongoing North American trade discussions. While its direct macroeconomic impact would likely remain limited if implemented, it highlights the growing use of tariffs as instruments of both economic policy and diplomatic leverage.
1 A temporary mechanism that allows the United States to impose emergency tariffs for a limited period.
2 A trade law instrument that authorises tariff measures against practices considered unfair or discriminatory.
