US Imposes New Tariffs on Imports From 60 Economies

On Thursday, July 23, US Trade Representative Jamieson Greer announced final action, at President Trump’s direction, to impose tariffs on imports from 60 economies under Section 301 of the Trade Act of 1974. The action responds to what USTR said was each economy’s failure to combat imports produced with forced labor. The tariffs took effect Friday, July 24.

The new Section 301 tariffs took effect at the same time a temporary 10% import surcharge imposed under Section 122 expired, effectively replacing that duty for many imports. President Trump imposed the Section 122 surcharge for 150 days beginning February 24 after the US Supreme Court ruled on February 20 that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose such tariffs.

Goods from 17 economies—including Canada, Mexico, the UK, India, Indonesia, and Malaysia—are subject to an additional 10% tariff. Most of the remaining economies—including Brazil, Chile, China, New Zealand, and Vietnam—are subject to an additional 12.5% tariff. For goods from the European Union and Taiwan, the combined most-favored-nation and Section 301 tariff rate is capped at 10%; for Japan, South Korea, and Switzerland, it is capped at 12.5%.

Impact on Wood Products

The action does not cover articles or parts of articles already subject to Section 232 tariffs, including softwood lumber. The Federal Register notice also exempts certain tropical and other nonconiferous lumber, tropical hardwood and eucalyptus logs, certain veneer and eucalyptus plywood products, and chemical wood pulp.

Other wood products—including many panel, engineered wood, and moulding and millwork classifications—are subject to the new tariffs unless covered by a product- or country-specific exemption.

The Federal Register notice, including the complete lists of covered economies and product exemptions, is available here.