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The Trump administration proposed new tariffs on 86 countries but also temporarily lowered tariffs on some agricultural and manufacturing equipment, in a rare political concession around one of the signature economic policies of President Donald Trump’s second term.
On June 2 the Office of the U.S. Trade Representative published conclusions to an ongoing investigation into labor practices in dozens of countries, or in jurisdictions from which imports originate. The investigation was launched after the Supreme Court’s ruling against the use of the International Emergency Economic Powers Act (IEEPA) to impose most of the duties levied by the Trump administration during Trump’s second term, along with another investigation under the authority granted by Section 301 of the Trade Act of 1974.
The investigation’s conclusions, which would lead to a 10-12.5% ad valorem tariff rate increase on products from major trade partners such as Canada, Mexico, the European Union, China and Japan, are subject to public comment and hearing. Public comment is due July 6, while the public hearing on these tariffs will occur on July 7.
During public remarks at a think tank in Washington on May 26, U.S. Trade Representative Jamieson Greer implied that the new country-specific tariff amounts would track with public, largely nonbinding agreements announced between the U.S. and other countries while the Trump administration was using IEEPA for tariffs.
Meanwhile, the Trump administration took the unusual step of lowering tariffs on certain agricultural and industrial equipment that fall under aluminum, steel and copper tariffs imposed last year using Section 232 of the Trade Expansion Act. The June 1 announcement largely lowers tariffs on those items from 25% to 15%, though a foreign company could qualify for a lower 10% ad valorem rate if 85% or more of the aluminum or steel in their product is U.S.-originated. Items already covered by agreements announced by the administration with other countries or jurisdictions, such as the European Union, are not affected.
The changes are temporary, scheduled to sunset on Dec. 31, 2027, although that could be subject to change by the president at any point.
New Brazil tariffs, Vietnam investigation
The USTR has proposed 25% tariffs on most Brazilian imports under Section 301 of the Trade Act of 1974, in a determination issued June 1.
The investigation, launched by a directive from Trump on July 15, 2025, included Brazil’s actions, practices and policies around anti-corruption enforcement, digital trade, intellectual property and electronic payment services, among other subjects.
The USTR proposed exemptions from the 25% rate for certain goods, including informational materials, donations, accompanied baggage and any item already covered by a product-specific tariff under Section 232, which includes, but is not limited to, aluminum, steel, copper, lumber, timber, auto parts and vehicles.
The USTR launched a separate Section 301 investigation into Vietnam and that country’s intellectual property protection and enforcement. Greer, the top U.S. trade negotiator, has implied that Section 301 tariffs would effectively replace much of the IEEPA regime imposed by the Trump administration until the Supreme Court ruled in February that those tariffs were illegal.
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