On July 24, the 10% global temporary import surcharge imposed by the United States under Section 122 of the Trade Act of 1974 is formally set to expire.
In February this year, after the U.S. Supreme Court ruled that the large-scale tariffs previously levied by the Trump administration were unconstitutional, the Trump administration quickly invoked Section 122 of the Trade Act of 1974, citing balance-of-payments difficulties, to impose a 10% temporary import tariff on most imported goods worldwide for a period of 150 days, effective February 24 and ending July 24. Under the statute, such tariffs can be applied for a maximum of 150 days; any extension would require congressional approval, which the market widely considers highly unlikely.
To avoid a “tariff vacuum” after the 10% temporary tariff expires, the Office of the U.S. Trade Representative (USTR) is pushing forward with a new tariff plan under Section 301 of the Trade Act of 1974. In March this year, the USTR launched Section 301 investigations into 60 major trading partners on the grounds that they had “not established and effectively enforced import bans on forced labor.” On June 2, the USTR issued a notice stating its intention to impose tariffs of 10% or 12.5% on 60 economies for “failing to ban imports of forced labor products.” According to the draft, 14 countries and regions that have established relevant import bans or reached trade commitments with the United States would be subject to the 10% rate, while the remaining 45 countries and regions would face the 12.5% rate.
U.S. Trade Representative Jamieson Greer said on July 21 that the administration expects to soon unveil new tariff measures to replace the expiring 10% global import tariff. At the same time, he said he could not give a specific date for the new tariff policy, adding that before the policy is formally announced, Congress and other stakeholders must be notified. On July 22, in written testimony submitted to the Senate Finance Committee, Greer stated that “as early as July 23, the USTR will release final response actions in the Section 301 investigations against 60 major trading partners.” Greer said the Section 301 tariff proposal covers “roughly 99% of U.S. trade.” As of press time, the USTR had not yet published the final measures.
Regarding the discussed $30 billion reciprocal tariff reduction between China and the United States, the matter remains at the framework negotiation stage, and the final product lists have not yet been announced. According to previous statements by the Ministry of Commerce, the two sides have agreed in principle to discuss a reciprocal tariff reduction framework arrangement under the Trade Council, with an amount of $30 billion each or more. The public comment period for the USTR has ended, and the final reduction list is expected to be released in the near future.
As the 10% temporary tariff officially expires and the new Section 301 tariffs are potentially implemented, chemical raw materials, plastic products, and other goods exported to the United States will face fresh tariff pressures. At the same time, if the China-U.S. reciprocal tariff reduction framework is ultimately finalized, some chemical raw materials and plastic products may be included in the tariff reduction scope, leaving the chemical industry facing a complex trade landscape where tariff reductions and increases run in parallel.
