Understanding U.S. trade remedies: What importers need to know

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 affecting importers, including the newly invoked Section 338 authority, ongoing Section 232 national security actions, Section 301 trade measures, and Section 122 temporary import surcharges. It also highlights recent developments that may affect tariff exposure, compliance obligations, and sourcing strategies.

Navigate this article

• What are U.S. trade remedies?
• Section 338 tariffs
• Section 232 tariffs
• Section 301 tariffs
• Section 122 tariffs
• Recent trade remedy developments
• What importers should do now
• How Baker Tilly can help

What are Section 338 tariffs?

Section 338 of the Tariff Act of 1930 authorizes the president to impose additional duties on imports from countries determined to discriminate against U.S. commerce. Unlike Section 122 actions, which are temporary unless extended by Congress, Section 338 duties remain in effect until modified, suspended, or revoked by presidential action [1].

Products currently affected

Effective Aug. 19, 2026, the United States will impose an additional 50% tariff on certain Canadian imports under three presidential proclamations addressing automobiles, alcoholic beverages, and dairy products. According to the proclamations:

• Automobiles: The administration determined that Canada discriminates against U.S.-origin vehicles by applying tariffs and tariff-rate quotas while providing more favorable treatment to automobiles imported from certain other countries.
• Alcoholic beverages: The administration determined that actions taken by Canadian provinces and territories beginning in March 2025 to restrict the purchase, distribution, and retail sale of U.S. alcoholic beverages, while continuing to allow imports from other countries, placed U.S. producers at a competitive disadvantage.
• Dairy products: The administration determined that Canada's administration of dairy tariff-rate quotas provides greater market access to certain European Union retailers under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) than U.S. retailers receive under the United States-Mexico-Canada Agreement (USMCA), disadvantaging U.S. cheese exports.

While the proclamations focus on these sectors, covered merchandise extends to a broader range of Canadian products identified in the published annexes, including certain wood, paper, essential oils, and sporting goods. Exceptions to the additional duties include certain energy products, potash, products already subject to Section 232 tariffs, qualifying civil aircraft articles and parts, certain fish products, critical minerals, and other designated goods [2].

Recent developments

On July 20, 2026, President Trump issued three proclamations under Section 338 of the Tariff Act of 1930 imposing additional duties on certain Canadian imports after determining that Canada had taken discriminatory actions affecting U.S. commerce. The proclamations represent one of the first modern uses of Section 338 authority and establish a new trade remedy framework distinct from existing Section 232, Section 301, and Section 122 actions [3].

What importers should monitor

Importers should closely monitor CBP implementation guidance, any revisions to the published annexes, and potential legal or diplomatic developments that could affect product coverage or exclusions. Companies importing goods from Canada should also reassess tariff exposure, including whether products that previously qualified for preferential treatment under the USMCA may now be subject to additional Section 338 duties, because USMCA preferential treatment does not automatically exempt covered products from the additional tariffs.

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 across 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 (effective July 31, 2026)
• Certain Taiwanese automotive parts, timber, lumber, and wood derivative products, which remain subject to reduced combined duty rates

Recent developments

Several notable Section 232 developments have occurred in recent weeks:

• On April 2, 2026, President Trump issued Proclamation 11021, strengthening import adjustments for aluminum, steel, and copper. The proclamation requires importers to report the countries where covered copper products were smelted and cast. CBP deployed the related ACE certification functionality July 16, 2026, with production deployment scheduled for July 30, 2026 [4].
• On June 29, 2026, U.S. Customs and Border Protection issued updated filing guidance for Section 232 import-adjustment offsets covering automobile parts and medium- and heavy-duty vehicle parts. The guidance provides additional direction regarding eligibility requirements, duty reporting, license reporting, and ACE tracking procedures [5].
• On July 20, 2026, President Trump issued a proclamation directing the Department of Commerce to establish an investment incentive program for domestic primary aluminum production. Under the program, companies with approved plans to build, expand, or modernize qualifying U.S. production facilities may become eligible to import corresponding quantities of primary aluminum at a reduced Section 232 tariff rate equal to half the otherwise applicable Section 232 rate [6].

What importers should monitor

Importers should continue monitoring several upcoming Section 232 developments, including:

• Implementation of new ACE reporting requirements for copper smelt-and-cast information.
• Commerce Department guidance regarding eligibility for the aluminum investment incentive program.
• Section 232 tariffs on pharmaceutical articles and active pharmaceutical ingredients (APIs), which remain scheduled to take effect July 31, 2026.
• The announced exemption for imported generic drugs through August 2028 before a proposed 100% tariff is expected to take effect, along with any additional implementation guidance issued by the administration.

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)
• Additional Section 301 duties on most imports from Brazil, generally at a 25% tariff rate, subject to specified exemptions.

Recent developments

On July 22, 2026, the Office of the U.S. Trade Representative (USTR) implemented an additional 25% Section 301 tariff on most products imported from Brazil. Unless a product qualifies for an exemption under applicable Chapter 99 tariff provisions, importers must report the appropriate Harmonized Tariff Schedule classification and pay the additional duties upon entry.

Key exemptions include certain agricultural products, energy-related products, civil aircraft and aerospace products, and products already subject to Section 232 tariffs [7].

What importers should monitor

Importers should continue monitoring ongoing Section 301 proceedings, including:

• USTR's structural excess capacity investigation, which remains under review following public hearings earlier this year [8].
• The USTR hearing related to Germany's pharmaceutical pricing and reimbursement policies, scheduled for Sept. 22, 2026. Interested parties may submit written comments, requests to appear, and summaries of testimony through Aug. 10, 2026 [9].

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 scheduled to expire July 24, 2026. While 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 made a reasonable showing that it is likely to succeed on appeal, finding that the Court of International Trade may have interpreted Section 122's balance-of-payments requirement too narrowly. The court also determined that allowing the injunction to remain in effect could adversely affect U.S. trade and foreign policy interests while any financial harm to plaintiffs could largely be remedied through refunds with interest if they ultimately prevail [10].

What importers should monitor

Importers should continue monitoring implementation of the July 24 expiration, particularly for shipments moving under Immediate Transportation (IT) entries. Because duty applicability is generally based on the IT acceptance date at the original port of importation, certain shipments entered after July 24 may still be subject to Section 122 duties if the IT entry was accepted before the expiration date.

Recent trade remedy developments

Trade policy continues to evolve through new investigations, litigation, regulatory actions, and presidential authority. Recent developments across the primary U.S. trade remedies include:

• The first modern use of Section 338 authority under the Tariff Act of 1930, establishing new tariffs on certain Canadian imports and expanding the range of U.S. trade remedies affecting importers.
• Implementation of new Section 232 reporting requirements for covered copper imports, updated import-adjustment guidance for certain vehicle parts, and a new domestic aluminum investment incentive program.
• Additional Section 301 duties on most imports from Brazil, along with ongoing USTR investigations into structural excess capacity in manufacturing sectors and Germany's pharmaceutical pricing and reimbursement practices.
• Continued litigation and implementation considerations related to Section 122 temporary import surcharges, including guidance for shipments moving under Immediate Transportation (IT) entries.

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) [11], USTR [12], and the Federal Register [13].

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 [14].
• Evaluating whether imports from Canada may now be subject to Section 338 duties, including products that previously qualified for preferential treatment under USMCA.
• Assessing 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.