USTR to Announce New Tariffs Before Substitute Levy Expires

2026-07-23

The US administration's 10% substitute tariff, applied to countries and regions around the world, expires on the 24th in US Eastern time. The Trump administration plans to launch new tariffs to replace it and continue collecting duties. Jamieson Greer, the US Trade Representative, said the final decision could be announced as early as the 23rd.

New tariffs under Section 301

The new tariffs will be based on Section 301 of the Trade Act. A draft seen in June proposed additional tariffs of 10% or 12.5% on 60 countries and regions, including Japan, with Japan set at 12.5%. Greer told a US Senate hearing on the 22nd, in a prepared summary of testimony released before the hearing, that 'as early as tomorrow, the 23rd, USTR will announce final measures'.

Rates to be set by rules in place

USTR argues that companies exploiting forced labor are distorting markets by distributing low-cost goods. It plans to set tariff rates for each country and region based on whether restrictions such as import bans are in place on such products. In the draft stage, 46 countries and regions including Japan were set at 12.5% on the grounds that effective restrictions were not in place, while 14 countries and regions, including the European Union, Indonesia and Mexico, which have imposed import bans, and Argentina, which has pledged anti-forced-labor measures in a trade agreement with the United States, were set at 10%. Products cited as examples include solar panel-related items and cotton produced in China's Xinjiang Uighur Autonomous Region.

Focus on whether relief measures continue

Reciprocal tariffs in force through February included special rate relief measures for Japan, the EU and South Korea, among others. The key question is whether those relief measures will be carried over under the new tariffs. Greer has indicated an intention to carry them over, saying the Trump administration wants to honor trade deals concluded over the past year.

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