Article | Executive briefing
Understanding U.S. trade remedies: What importers need to know
Section 122, Section 232, and Section 301 trade remedy updates
June 26, 2026 · Authored by Pete Mento, Tosca Derrick and Danae Helgeson
As trade policy continues to evolve through new tariffs, investigations, and court decisions, importers should understand how U.S. trade remedies may affect their supply chains, duty exposure, and compliance strategies.
Trade policy remains a dynamic area for importers, with new tariffs, legal challenges, and regulatory actions continuing to reshape the global trade landscape. Whether your business imports raw materials, finished goods, or components, understanding U.S. trade remedies is essential to managing costs, maintaining compliance, and responding proactively to policy changes.
This resource provides an overview of the primary U.S. trade remedies currently affecting importers, including Sections 232, 301, and 122. It also highlights recent developments and key considerations to help organizations monitor evolving trade requirements and evaluate potential business impacts.
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What are U.S. trade remedies?
U.S. trade remedies are statutory tools that allow the federal government to address specific trade concerns, such as national security risks, unfair foreign trade practices, or economic conditions that may adversely affect U.S. industries. Depending on the legal authority invoked, these measures may impose additional duties, investigate foreign trade practices, or temporarily restrict imports.
Understanding which trade remedy applies, why it was implemented, and how long it may remain in effect can help importers anticipate changes, assess tariff exposure, and make informed sourcing decisions.
Trade remedy | Purpose | Statutory basis | Scope of application | Duration |
Section 301 | Unfair, unreasonable, or discriminatory trade practices that hurt U.S. commerce | Trade Act of 1974 | Empowers the Office of the United States Trade Representative (USTR) to investigate. | Remain in effect, indefinitely until modified or terminated by the USTR; subject to four-year reviews |
Section 232 | National Security – domestic production and economic welfare | Trade Expansion Act of 1962 | Investigations are conducted by the Department of Commerce’s Bureau of Industry and Security | Remain in effect until modified or revoked by a Presidential Proclamation |
Section 122 | Instated to address the United States ‘balance of payments’ deficits | Trade Act of 1974 | Empowers the President to impose ‘temporary import surcharges’ | 150 days – unless extended by Congress |
What are Section 232 tariffs?
Section 232 of the Trade Expansion Act of 1962 authorizes the president to impose trade measures when imports are determined to threaten U.S. national security. Investigations are conducted by the Bureau of Industry and Security (BIS), which evaluates whether imports impair the nation's ability to maintain critical industries and defense capabilities.
Products currently affected
Section 232 tariffs currently apply to several industries and products, including:
- Automobiles and certain auto parts
- Medium- and heavy-duty vehicles (MHDV)
- Steel, aluminum, copper, and derivative products
- Timber, lumber, and wood derivative products
- Semiconductors and derivative products
- Pharmaceuticals and pharmaceutical ingredients
- Certain Taiwanese automotive parts, timber, lumber, and wood derivative products, which are subject to reduced combined duty rates under current policy
Recent developments
Recent presidential action temporarily adjusted certain Section 232 tariffs through Dec. 31, 2027. Key changes include:
- Reduced tariff rates for certain agricultural equipment, including combines and harvesters.
- Expansion of existing 15% tariff treatment to additional categories of industrial equipment, such as bulldozers and forklifts imported from qualifying trade agreement countries.
- A reduced 10% duty rate for qualifying foreign manufacturers whose capital equipment contains at least 85% U.S.-melted and poured steel or U.S.-smelted and cast aluminum by weight.
What importers should monitor
Additional Section 232 tariffs on pharmaceutical articles and active pharmaceutical ingredients (APIs) are scheduled to take effect beginning July 31, 2026. Current guidance includes:
- A 100% tariff on certain patented pharmaceutical products listed in the U.S. Food and Drug Administration's (FDA) Orange Book [5] and licensed biological products listed in the FDA Purple Book [6].
- Reduced tariff rates for qualifying products imported from select countries.
- Temporary exemptions for companies identified in Annex IV through Sept. 29, 2026.
- Reduced tariff opportunities for companies entering approved onshoring agreements with BIS or achieving Most Favored Nation (MFN) status through the U.S. Department of Health and Human Services (HHS).
What are Section 301 tariffs?
Section 301 of the Trade Act of 1974 authorizes USTR to investigate and respond to unfair foreign trade practices that burden or restrict U.S. commerce. Actions may include imposing tariffs or taking other trade measures designed to encourage policy changes by foreign governments.
Current scope
Current Section 301 trade remedies include:
- Tariffs on products imported from China, with rates ranging from 7.5% to 100%
- A phased implementation of Section 301 duties on certain products from Nicaragua that are not covered by the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR)
Recent developments
Several notable developments have occurred under Section 301:
- On June 15, 2026, the U.S. Supreme Court declined to review a legal challenge involving the Section 301 List 3 and List 4A tariffs on imports from China.
- USTR initiated a Section 301 investigation into Germany's pharmaceutical pricing and reimbursement policies to evaluate whether they unfairly burden U.S. commerce.
- USTR also determined that the import policies of numerous economies related to forced labor may warrant additional Section 301 actions, proposing new tariff rates depending on each economy's enforcement practices.
What importers should monitor
Upcoming USTR hearings addressing proposed forced labor tariff actions and the Germany investigation may influence future trade policy and additional Section 301 measures. Organizations importing goods from affected jurisdictions should continue monitoring these proceedings.
What are Section 122 tariffs?
Section 122 of the Trade Act of 1974 provides the president with temporary authority to impose import surcharges to address U.S. balance-of-payments deficits. Unlike Sections 232 and 301, Section 122 actions are intended to be temporary unless extended by Congress.
Current status
Section 122 currently imposes a 10% universal tariff that is scheduled to expire July 24, 2026. While ongoing litigation continues, the duties remain in effect.
Recent developments
On June 11, 2026, the U.S. Court of Appeals for the Federal Circuit granted the federal government's request to stay a Court of International Trade (CIT) injunction that would have paused collection of Section 122 duties.
The Federal Circuit concluded that the government had demonstrated a likelihood of success on appeal and determined that suspending tariff collection could adversely affect U.S. trade and foreign policy interests while any financial harm to importers could potentially be addressed through refunds with interest if the plaintiffs ultimately prevail.
What importers should monitor
Importers should continue monitoring the Federal Circuit appeal because the court's final decision may shape how Section 122 authority is interpreted and influence future use of temporary import surcharges. Until then, Section 122 duties remain in effect.
Recent trade remedy developments
Trade policy continues to evolve through new regulatory actions, litigation, and presidential authority. Recent developments across the primary U.S. trade remedies include:
- Temporary adjustments to certain Section 232 tariff rates
- New Section 232 pharmaceutical tariff actions
- Ongoing Section 301 investigations involving Germany and forced labor enforcement
- Continued litigation involving Section 301 tariffs on imports from China
- Federal court proceedings affecting Section 122 tariff authority and implementation
Because these developments can directly affect duty liability and sourcing strategies, importers should regularly review new announcements from U.S. Customs and Border Protection (CBP) [1], USTR [2], BIS [3], and the Federal Register [4].
What importers should do now
Trade remedy programs can change quickly through executive action, regulatory updates, or court decisions. Organizations should consider:
- Reviewing Harmonized Tariff Schedule (HTS) classifications for imported products [7].
- Assessing current tariff exposure across global sourcing strategies.
- Monitoring pending investigations and litigation that could affect future duty liability.
- Evaluating opportunities to mitigate tariff costs through supply chain planning or sourcing alternatives.
- Working with trade advisors to understand how evolving U.S. trade remedies may affect compliance obligations and business operations.
How Baker Tilly can help
As trade policy continues to evolve, organizations need practical guidance to understand changing tariff requirements and their potential business impacts. Baker Tilly's Global Trade Management team helps importers evaluate tariff exposure, assess compliance obligations, identify planning opportunities, and navigate an increasingly complex global trade environment.
References and resources
[1] https://www.cbp.gov/
[2] https://ustr.gov/
[3] https://www.bis.gov/
[4] https://www.federalregister.gov/
[5] https://www.accessdata.fda.gov/scripts/cder/ob/index.cfm
[6] https://purplebooksearch.fda.gov/
[7] https://hts.usitc.gov/
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