US Section 301 Tariffs Take Effect For 60 Countries

The United States has implemented a new round of tariff measures against 60 economies under Section 301 of the Trade Act of 1974 on July 24. The Trump administration is gradually shifting its tariff system from temporary legal authorities toward a long-term framework centered on traditional trade laws such as Section 301 and Section 232.

The move indicates that US trade policy is transitioning from temporary measures to a more institutionalized tariff system. Multiple investigations and industry-related measures are expected to be implemented in the coming weeks, continuing to influence global trade and international shipping markets.

Measures Cover 99.4% Of US Imports

On July 23 local time, the Office of the United States Trade Representative (USTR) announced the completion of final Section 301 investigation decisions covering 60 economies and introduced new Section 301 tariff measures under presidential direction.

According to the USTR announcement:

Economies that have established or committed to establishing import bans on goods linked to forced labor will face an additional 10% tariff.

Other economies covered by the investigations will face an additional 12.5% tariff.

Certain products will continue to receive exemption arrangements, including some energy products, critical raw materials, and specific goods.

The USTR stated that the latest measures cover 99.4% of US imports. The decisions were made after months of investigations, two rounds of public hearings, and more than 1,600 written comments. The new measures officially replace the temporary 10% global tariff imposed under Section 122 of the Trade Act, which expired on July 24.

The US government stated that the measures aim to strengthen trade responses to forced labor issues across global supply chains.

Trump Administration Rebuilds Long-Term Tariff System

Market observers generally believe that the latest Section 301 measures represent more than a tariff adjustment, signaling that the Trump administration is rebuilding a new tariff legal framework.

Previously, the US Supreme Court ruled that the broad "reciprocal tariffs" imposed by Trump under emergency powers lacked sufficient legal basis, limiting the original policy approach. Following this decision, the US government has increasingly relied on established trade tools, including Section 301 investigations and Section 232 national security investigations, to continue advancing its trade agenda.

US Trade Representative Jamieson Greer recently stated that while the legal authorities used for tariff implementation have changed, the US trade strategy remains unchanged. The administration will continue using existing legal tools to promote manufacturing reshoring and reduce trade deficits.

The statement indicates that future US trade policies will rely more heavily on formal investigation procedures rather than temporary administrative measures.

Trade Costs May Continue Rising For Multiple Countries

As Section 301 investigations continue expanding, some countries are facing multiple layers of tariff pressure.

For example, Vietnam is subject not only to the newly implemented Section 301 tariffs but also remains involved in intellectual property-related Section 301 investigations and excess capacity-related Section 301 investigations. Brazil has also faced additional tariff measures linked to another Section 301 investigation.

Although the applicable tariff rates, covered products, and final implementation methods for different investigations have not yet been fully determined, markets generally expect US tariff actions targeting key industries and major trading partners to continue increasing.

For global supply chains, companies may continue responding to rising trade costs by adjusting sourcing strategies, optimizing production locations, increasing inventory preparation, and redesigning shipping routes. This also means that international maritime cargo flows may continue to experience adjustments.

Industry Outlook

For the international shipping industry, the long-term development of US tariff policies means that uncertainty in global trade flows has not ended but has entered a new adjustment cycle.

In the coming period, if Section 301 and Section 232 investigations are gradually implemented, they may continue affecting the structure of China-US and Asian export cargo flows. Manufacturing orders, port cargo volumes, and cross-border logistics networks may face further redistribution.

For cargo owners, freight forwarders, and shipping companies, continuous monitoring of US trade investigations, tariff changes in key industries, and capacity adjustments by major shipping carriers will be essential. Companies should evaluate supply chain and transportation strategies in advance to reduce operational risks caused by policy changes.