Trump administration acts to impose additional tariffs under Section 232 and Section 301 in response to the IEEPA court ruling
- After the Supreme Court struck down the Trump administration’s IEEPA tariffs, the administration has responded by seeking to impose new tariffs under Section 301 and Section 232.
- Certain new Section 232 tariffs took effect on April 2, 2026, including new duties on steel, aluminum, copper and pharmaceuticals, with the potential for additional goods to be targeted in the future.
- Proposed Section 301 tariffs target roughly 100 countries but will only be imposed after the official investigation processes are completed, likely in summer 2026.
- To prepare, evaluate your supply chain to determine your tariff exposure, assess whether you have the systems in place to track tariff changes and talk with a strategic advisor about tariff policy and how you can adapt.
The tariff ride isn’t over. After the Supreme Court struck down the global tariffs enacted under the International Emergency Economic Powers Act (IEEPA), the Trump administration has announced it will instead pursue new Section 301 and Section 232 tariffs on dozens of U.S. trade partners and product categories.
Certain Section 232 tariffs already took effect on April 2, 2026, and additional Section 301 tariffs could follow over the summer. What should you know about both, and how could new tariff policies affect your business in an already challenging era for manufacturers?
Keep reading to find out.
Why is the Trump administration seeking to impose new Section 232 and 301 tariffs?
After the Supreme Court struck down the Trump administration’s IEEPA global reciprocal tariffs, the administration responded by imposing a 10% tariff under Section 122, effective February 24. This trade law authorizes temporary tariffs of up to 15% for 150 days for a “balance of payments” deficit.
However, those Section 122 tariffs will expire at 12:01 a.m. ET on July 24, 2026. To replace them, the administration ordered new tariffs under Section 232 on April 2, 2026, as Section 232 tariffs can be deployed indefinitely. It is also moving quickly through the Section 301 process, which may lead to new tariffs at yet-to-be-determined rates that can also be imposed without a time limitation.
However, Section 301 tariffs will likely not be in place until summer 2026, as they cannot be activated until after appropriate investigations are concluded.
What are Section 232 tariffs?
Section 232 tariffs are import taxes imposed under the Trade Expansion Act of 1962. The act allows the commerce secretary to recommend that the president place tariffs on categories of goods for reasons related to national security, following an investigation process carried out by the commerce department.
- Section 232 had only been invoked twice prior to 2018, but has been a favorite tool of both the first and second Trump administrations.
- Tariffs imposed under Section 232 have already been upheld by the U.S. Supreme Court.
What are Section 301 tariffs?
Section 301 tariffs are taxes on imported goods from specific countries. Under the Trade Act of 1974, Section 301 authorizes the president to impose tariffs in cases where the Office of the United States Trade Representative (USTR) has identified unfair trade practices by a U.S. trading partner.
- The Section 301 process begins with USTR conducting an investigation into possible unfair trading practices. This process includes a period of public comments and hearings.
- USTR will then attempt to negotiate a settlement with the country or countries that have been identified as conducting unfair trading practices.
- If no settlement is reached, the president can then impose tariffs as a retaliatory measure.
- This process has already been upheld by the U.S. Court of International Trade.
Which goods are being targeted for tariffs under Section 232?
The new Section 232 tariffs imposed on April 2, 2026, target specific categories of goods. These include steel, aluminum, copper and pharmaceuticals.
- Certain steel, aluminum and copper imports are now subject to tariffs of up to 50%.
- Certain imported pharmaceuticals and pharmaceutical ingredients are now taxed at up to 100%.
- There are a significant number of carve-outs and exemptions built into the April 2 Section 232 proclamation, so manufacturers should seek guidance on how these tariffs could affect their specific circumstances.
- The administration could also seek to impose more Section 232 tariffs in the future, should it choose to do so after concluding additional investigations.
Which countries are being targeted for tariffs under Section 301?
USTR is targeting roughly 100 countries with Section 301 tariffs. It has announced two separate Section 301 investigations into what officials claim are excess capacity and production issues in the manufacturing sector and forced labor practices.
- USTR has opened an investigation into fourteen countries and the 27-nation European Union bloc relating to excess capacity and production in manufacturing sectors. The agency will accept public comments through April 16, 2026, and hold hearings in connection with the investigations starting on May 5, 2026.
- The excess capacity investigation covers economies including China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.
- Separately, USTR has also begun investigating sixty U.S. trading partners for what it describes as a failure to take action on forced labor. Public comments are also due April 16, with a public hearing scheduled for April 28, 2026.
- The forced labor investigation covers countries throughout Southern and Central America, the Middle East, Africa and Asia, and also includes Canada, which USTR excluded from the manufacturing excess capacity investigation.
Given that tariffs are one of the administration’s favorite policies, businesses should prepare for at least some of the potential Section 301 tariffs to be put in place after the investigation process concludes.
How should you prepare for new tariffs?
If your supply chain includes any of the countries that are being targeted for Section 301 tariffs or goods being targeted for Section 232, you will likely be affected if those tariffs are imposed. Here’s how to start preparing:
1. Assess your supply chain
Do a deep dive into your supply chain to assess your full level of exposure to potential tariffs. Where are you and your suppliers importing goods from? What goods do you import the most of each year? What is the total value? How will you modify your quoting process if a tariff is imposed on a good that goes into the product you supply?
2. Evaluate your systems
One tariff challenge is simply keeping up with changing rates or tracking how those changes affect your costs. Evaluate whether your existing systems can do this, or if you need to put new tools in place to help.
What is your plan to track tariffs paid? How will you communicate price increases, if necessary, to your customers?
3. Seek ongoing guidance
Talk to your purchasing or supply chain department. What are they seeing each day? Are there ways to streamline what they are doing? These upcoming tariff changes will create transactional waste in your business, so plan ahead to the best of your ability.
Beyond seeking guidance internally, consult with a strategic advisory firm with experience in both tariff policy and the needs of the manufacturing industry. An advisor can help you understand changing tariff policies and recommend specific strategies to help your business adapt.
How Wipfli can help
We advise manufacturers on tariff policy, taxes, performance, technology and growth. Let’s talk about the challenges you face and how we can help your business adapt to meet the moment. Start a conversation.
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