U.S. 10% Global Tariff Ends on the 24th... Countdown to New Tariffs

Brazil Sets Precedent as First Target of U.S. Section 301 Sanctions
Korea Included Among 46 Economies Facing 12.5% Tariff
USTR Collecting Feedback, "Decision Expected Within Weeks"

U.S. President Donald Trump’s “10% global tariff” imposed last February will expire in five days. The Trump administration plans to use alternative measures, including Section 301 of the U.S. Trade Act, to maintain the tariffs. Jamison Greer, Representative of the U.S. Trade Representative (USTR), also recently stated that decisions on the Section 301 investigation results and country-specific actions would be made “within weeks,” leading to expectations that tariffs at a similar level will continue without a significant gap.

Section 122 of the Trade Act—Application Deadline Ends on the 24th

Cargo containers at the Port of Oakland, California, USA. Photo by AP Yonhap News

The legal basis for the Trump administration’s 10% global tariff, Section 122 of the Trade Act, will expire on the 24th (local time). Section 122 allows the U.S. president to impose tariffs for up to 150 days at a maximum rate of 15%, without congressional approval, if the U.S. faces a serious balance of payments deficit or a sharp decline in the value of the dollar.

Previously, in February, after the U.S. Supreme Court ruled reciprocal tariffs illegal, the Trump administration immediately invoked Section 122 as a basis to apply the 10% global tariff. At that time, the administration also announced plans to cite other legal provisions, such as Section 301, around the expiration of Section 122 in July, to continue tariff measures. Section 301 authorizes the administration to investigate the unfair trade practices of counterparties and impose retaliatory tariffs or other sanctions.

Last month, on the 2nd, the USTR already announced plans to impose additional tariffs of 10% or 12.5% on imports from 60 economic regions, based on Section 301. Korea, as well as Japan, China, and Australia, are among the 46 economies subject to the higher 12.5% tariff. This group is comprised of countries that the U.S. has determined have failed to introduce and effectively enforce measures prohibiting imports of goods made through forced labor. Currently, the USTR is collecting opinions and continuing consultations with governments of each country.

Brazil became the first country to enter into a tariff war with the United States. On the 15th, the Trump administration announced that Brazil had violated Section 301 and, under the pretext of correcting unfair trade practices, would impose a 25% tariff on some products. The affected items number in the thousands, covering a wide range of Brazilian exports except for key products such as oil, gas, beef, coffee, oranges, and aircraft parts. The new tariffs will take effect from the 22nd. The Brazilian government interpreted this as “political oppression” against their country and, just one day later on the 16th, hinted at imposing “retaliatory tariffs” on the United States. Specific products and tariff rates will be made public at a later date.

Country-Specific Tariffs Based on Section 301 Likely a Matter of Time

Jamison Greer, United States Trade Representative (USTR), held a Q&A session with reporters at the White House on April 2 (local time). Photo by AP Yonhap News

According to industry consensus, the new tariffs under Section 301 will be swiftly applied to other countries as well. The Associated Press reported that trade lawyers and relevant industry experts are confident that the Trump administration will succeed in replacing the Section 122 tariffs with those under Section 301 by the deadline on the 24th.

Ryan Majerus, partner at King & Spalding and a former official in the Trump and Biden administrations, said, “They will put up tariff barriers again.” Former U.S. trade official Sarah Bianchi, now Chief International Policy Strategist at Evercore ISI, commented, “Transitioning to Section 301 tariffs might reduce uncertainty, but it won’t eliminate it.”

Representative Greer also stated in an interview with Japan’s NHK broadcaster and others in Utah on the 17th that “we are analyzing the submitted comments” and expressed hope that “a conclusion will be reached in some form within the next few weeks.” He further suggested the possibility of utilizing Section 122 again, noting, “It is essentially a temporary authority, but it is not specified in the article how many times it can be invoked.” He had made similar remarks at a Council on Foreign Relations (CFR) event in May. At that time, foreign outlets such as The Wall Street Journal (WSJ) interpreted his comments as mentioning the option of reapplying Section 122 to buy time for using Section 301.

This content was produced with the assistance of AI translation services.