Under Section 301 of the Trade Act of 1974 (“Section 301”), the U.S. Trade Representative is authorized to impose tariffs in response to a foreign government act, policy, or practice it determines “burdens or restricts U.S. commerce.” Since July 2025, the Office of the U.S. Trade Representative (“USTR”) has initiated six new Section 301 proceedings, concluding several in record time and imposing a range of responsive tariffs. Most recently, USTR finalized Section 301 tariffs ranging from 10 percent to 12.5 percent against 60 economies relating to their failure to impose or enforce import prohibitions on goods made with forced labor. Several other Section 301 investigations remain pending, with determinations in some expected imminently. This client alert summarizes recent Section 301 actions by the Trump Administration as well as other Section 301 measures currently in force. It also describes actions expected in the near term, including new Section 301 actions the Trump Administration may take in the future.
Under Section 301, USTR is authorized to investigate foreign government acts, policies, or practices that are discriminatory or unreasonable, and that burden or restrict U.S. commerce. Where USTR determines such measures exist, it may take trade action, including tariffs, against imports from the foreign country under investigation. USTR may initiate a Section 301 investigation in response to a petition or upon its own initiative. Once an investigation is initiated, the statute requires USTR to provide interested parties notice as well as an opportunity to comment on the investigation, including holding a hearing upon request. Where USTR imposes tariffs or trade measures against imports under Section 301, that action must be reviewed every four years and may be extended if domestic industries that benefit from the action so request. USTR also has authority to reinstitute tariffs under terminated or suspended Section 301 actions under certain conditions.
Following the Supreme Court decision earlier this year holding that tariffs imposed by President Trump under the International Emergency Economic Powers Act (“IEEPA”) were unlawful, U.S. government officials indicated that the Administration would shift towards prioritizing use of Section 301 to impose tariffs, including as a means to reconstruct tariffs previously imposed under IEEPA. Because imposition of tariffs under Section 301 first requires that USTR complete certain administrative procedures that can take several months, the Trump Administration first invoked Section 122 of the Trade Act of 1974 (“Section 122”) as a stopgap measure, imposing time-limited global tariffs of 10% effective February 24 through July 23, to allow time to undertake the administrative process under Section 301.
The Administration subsequently launched two Section 301 actions relating to (1) excess capacity in manufacturing and production across 16 economies (including all member states of the European Union) and (2) the alleged failure of 60 economies (including EU member states) to maintain or effectively enforce import bans on goods made with forced labor. Trump Administration officials have framed both investigations as vehicles through which it seeks to replicate tariffs previously imposed under IEEPA. Separate from efforts to reconstruct the IEEPA tariffs, USTR has also recently initiated other new Section 301 investigations, taken action to modify existing Section 301 actions, and suggested that additional Section 301 investigations may be forthcoming.
The result is a complex—and in some cases overlapping—web of tariff measures that impact a range of products imported into the United States from many countries. Additionally, separate sector-specific tariff measures imposed by the Trump Administration under Section 232 of the Trade Expansion Act of 1962 (“Section 232”) further complicate the tariff landscape and can—in certain cases—apply simultaneously to imports that are subject to Section 301 tariffs, unless explicit exclusions exist.
Several tariff actions imposed under Section 301 are currently in force. In addition to country-specific investigations and actions against China, Nicaragua, and Brazil, recent Section 301 tariffs relating to forced labor have also affected imports from 60 economies (86 countries, including individual EU member states), as summarized below.
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Section 301 Action
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Background
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Current Status
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Recent / Pending Action
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China — Technology Transfer, Intellectual Property (“IP”),
and Innovation
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USTR initiated this investigation on August 18, 2017. In March 2018, USTR imposed responsive tariffs in several tranches between July 2018 and September 2019, which have since been subject to several modifications, including as a result of USTR’s first four-year review of the action, which concluded in May 2024.
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At present, tariffs range from 7.5 percent to 100 percent and apply to a wide variety of products from China. Limited exclusions for specific products remain in effect until November 9, 2026.
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On May 6, 2026, USTR initiated the second four-year review of this action, providing an opportunity for domestic industries that benefit from the action to request its continuation. Deadlines for such requests were set for July 5, 2026, and August 22, 2026.
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China — Targeting of the Maritime, Logistics and Shipbuilding Sectors for Dominance
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USTR initiated this investigation on April 17, 2024, in response to a petition from five labor unions. In April 2025, USTR announced it would impose various measures against China, including fees on Chinese owned or operated vessels, and future tariffs on ship-to-shore cranes and certain cargo-handling equipment with a Chinese-nexus.
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No measures are currently in effect. USTR suspended measures imposed or proposed under this action effective November 10, 2025, for one year.
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USTR’s suspension of previously imposed measures is scheduled to expire on November 10, 2026, though it may be extended.
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Nicaragua — Labor Rights, Human Rights, and Rule of Law
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USTR self-initiated this investigation on December 10, 2024, and announced in December 2025 that it would impose a 15 percent tariff (to be phased in over two years) on imports from Nicaragua for which preference is not claimed under the CAFTA-DR trade agreement.
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Under the phase-in schedule, tariffs are set as follows:
- Zero percent effective January 1, 2026;
- 10 percent on January 1, 2027; and
- 15 percent on January 1, 2028.
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There have been no recent developments relating to this action, though increased tariffs of 10 percent are scheduled to take effect on January 1, 2027.
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China — Targeting of the Semiconductor Industry for Dominance
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USTR self-initiated this investigation in December 2024, and announced in December 2025 that it would impose tariffs on semiconductors from China. USTR noted that tariffs would be phased in beginning in June 2027, though it has not yet indicated what tariff rates will apply at that time.
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No tariffs or trade measures are currently in place, but are scheduled to take effect on June 23, 2027, with the applicable rate to be announced at least 30 days prior to that date.
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USTR is scheduled to announce no later than approximately May 24, 2027 the applicable tariff rate scheduled to take effect in June 2027.
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Brazil — Digital Trade and Electronic Payment Services; Unfair, Preferential Tariffs; Anti-Corruption Enforcement; IP Protection; Ethanol Market Access; and Illegal Deforestation; Hearing
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USTR self-initiated this investigation on July 15, 2025, “at the specific direction of the President.” After determining in June 2026 that Brazil’s conduct was actionable, USTR accepted public comments and held a hearing on proposed tariffs of 25 percent that would apply to imports from Brazil, subject to certain exclusions. On July 15, 2026, USTR finalized the tariff action against Brazil.
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Tariffs of 25 percent apply to all imports from Brazil effective July 22, 2026, unless an explicit exemption applies. Exemptions apply to a wide range of products, including certain agricultural goods and natural resources, as well as aircraft and parts and pharmaceuticals.
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There is no pending action in this proceeding. Tariffs of 25 percent took effect on July 22, 2026, subject to a range of exemptions.
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60 Economies — Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor
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On March 12, 2026, USTR initiated 60 investigations into various economies relating to forced labor import prohibitions, determining on June 2, 2026, that the conduct of each of the economies under investigation was actionable under Section 301.
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Effective July 24, 2026, special tariff rates (inclusive of, or not exceeding, standard “MFN” tariff rates set forth in Column 1 of the U.S. Harmonized Tariff Schedule) apply to the EU and Taiwan (10 percent), as well as Japan, South Korea, and Switzerland (12.5 percent). Tariff rates of 10 percent or 12.5 percent apply to all other countries in addition to Column 1 MFN tariffs.
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After considering comments and holding a hearing on its proposed tariff responsive actions, USTR announced on July 23 that tariffs on imports from the 60 economies would be subject to tariffs ranging from 10 percent to 12.5 percent, effective just hours later, on July 24, 2026.
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Several other Section 301 investigations initiated by the Trump Administration remain pending, and are identified in the table below. Among them is the excess capacity investigation that—along with the recently finalized Section 301 action on forced labor import bans—is expected to serve as a vehicle for the Trump Administration to reconstruct tariffs previously imposed under IEEPA.
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Investigation
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Background & Key Dates
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Forthcoming Actions
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China — Implementation of Phase One Agreement
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USTR self-initiated this investigation on October 24, 2025. USTR accepted public comments, and held a hearing in December 2025.
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USTR’s determination of actionability and any resulting responsive trade measures are expected by the fall of 2026.
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16 Economies — Structural Excess Capacity and Production Manufacturing Sectors
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USTR self-initiated these investigations on March 11, 2026. USTR accepted public comments regarding the investigations until April 15, 2026 (and rebuttal comments through mid-May 2026), and also held public hearings between May 5 and May 8, 2026. Targeted countries include China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India, all of which were also subject to the Section 301 forced labor investigation.
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Together with the forced labor investigation, the Trump Administration has framed this proceeding as a vehicle for reconstructing IEEPA tariffs. USTR has suggested that its determinations and any resulting proposed actions may be imminent, and that any resulting tariff rates—when combined with Section 301 forced labor tariff rates—will not exceed maximum tariff rates previously agreed to under recent U.S. trade deals.
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Vietnam — IP Protection and Enforcement
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This investigation was self-initiated on May 29, 2026, following Vietnam’s designation in USTR’s annual Special 301 report as a “Priority Foreign Country” (a designation that triggers review of a country’s IP policies and practices under Section 301). USTR solicited public comments from interested parties on the investigation through July 2, 2026, and has not announced any plans to hold a hearing at this time.
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Timing for any determination remains uncertain, though this proceeding may influence, and be influenced by, ongoing trade negotiations with Vietnam.
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Germany — Persistent Underpayment for Innovative Pharmaceutical Products
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USTR self-initiated this investigation on June 18, 2026, as Germany was considering reforms to its pharmaceutical pricing practices to introduce additional cost-cutting measures, which were ultimately approved on July 10. USTR will continue to accept public comments on this investigation until August 10, 2026.
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USTR will hold a hearing on September 22, 2026, and will accept rebuttal comments seven days after the hearing closes. In the meantime, USTR is also holding negotiations with the German government regarding its policies and recent changes made to its pharmaceutical pricing framework.
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U.S. government officials have suggested that the Trump Administration will continue to rely on Section 301 to address what it views as unfair trade practices and distortions to the global trading system. For instance, USTR has indicated that Section 301 could be used to address abuses related to seafood and fishing, unfair domestic and export-driven agricultural policies, and digital services taxes and other tech policies. USTR has also indicated it may initiate Section 301 investigations relating to pharmaceutical pricing in countries other than Germany, including other high-income countries in Europe and Asia. Most recently, President Trump indicated USTR may initiate a Section 301 investigation regarding fines the European Union has imposed on U.S. technology firms over violations of its digital regulations.
The Trump Administration’s increasing use of Section 301 has resulted in a complex web of tariff actions, with additional tariffs expected to be announced. Companies reliant on international supply chains should monitor these proceedings and related announcements to assess potential impacts on their business. In doing so, affected companies may wish to pay particular attention to the following considerations.
Expedited Conduct of Section 301 Proceedings
USTR has expedited several recent Section 301 investigations, including the recently concluded forced labor action, in which USTR released its determination 82 days following initiation, and tariffs became effective only hours after being finalized and published by USTR. In the face of this dynamic and fast-paced trade environment, companies should remain alert to potential tariff actions and be prepared to act quickly to respond to new Section 301 tariff regimes as they are announced.
Tariff Stacking and Culmination
Whether Section 301 tariffs apply on top of (or “stack” with) other tariffs (including other Section 301 tariffs) is a complex question that often requires a case-by-case assessment of the specific Section 301 tariff regime at issue. For instance, Section 301 tariffs on China under the technology transfer action generally stack with all other tariffs. By contrast, Section 301 duties recently imposed (i) under the forced labor proceeding and (ii) separately against Brazil do not apply to products subject to Section 232 duties, but may stack with each other (such that certain imports from Brazil may be subject to both the 12.5 percent forced labor tariff and the 25 percent Brazil tariff, resulting in a cumulative Section 301 tariff of 37.5 percent). Similarly, the Section 301 forced labor tariffs interact differently with standard MFN tariff rates set forth in Column 1 of the U.S. Harmonized Tariff Schedule for imports from the EU, Taiwan, Japan, South Korea, and Switzerland than for imports from other countries.
In short, companies must not only assess if imports are subject to specific Section 301 tariffs, but also consider whether and how other tariffs may apply. This can be a complex exercise, depending on the product and the country of origin.
Modification of Existing Section 301 Tariffs Possible
Under U.S. law, USTR has authority to modify existing Section 301 tariffs and to reactivate tariffs under terminated or suspended Section 301 actions that are subject to ongoing monitoring. USTR may thus seek to modify certain Section 301 tariffs in the near term, for example to reflect trade deals with foreign partners. For this reason, companies should also carefully monitor any changes made to Section 301 actions that may impact their business.
As an example, following a visit by President Trump to China in May 2026, USTR invited comments on June 2 on the newly formed U.S.-China Board of Trade, a bilateral mechanism intended to identify and reduce tariffs on “non-sensitive products” as part of ongoing trade negotiations with China. Because this mechanism is intended to target “certain non-MFN tariffs,” Section 301 tariffs are likely to be a candidate for reductions. Initial comments on this process were due to USTR on July 10, 2026, with rebuttal comments by July 27, 2026. While there is no concrete timeline for announcement of any resulting tariff reductions, Chinese President Xi’s anticipated visit to the United States on September 24, 2026, will likely influence any announcements. Separately, USTR has also launched the second four-year review of the China Section 301 technology transfer tariffs, which could lead to additional changes to those tariffs. As part of this review, USTR solicited requests to continue the action from domestic industries on May 6, 2026, with such requests due by July 5, 2026, or August 22, 2026, depending on the product at issue.
USTR may also seek to implement additional changes to other Section 301 actions, including as a result of ongoing trade negotiations with a range of countries that may implicate issues relating to the forced labor and excess capacity investigations.
Covington’s trade lawyers have been advising a wide range of clients with regard to recent tariff actions, including those imposed under Section 301. Covington can assist with related customs and supply chain questions, such as how Section 301 tariffs interact with other tariffs, as well as with assessing exposure to potential foreign retaliatory trade actions and evaluating options for navigating such measures. If you have any questions concerning this alert, please contact the members of our Trade Policy practice.
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